In 2014/2015 (previous Bear Market) BTC represented more than 80% of the Total Market Cap but today this value is below 60%. Considering this and because we don’t have enough data to create a MRVR ratio for all the major cryptocurrencies (calculated by dividing the Network Value by the Realised Cap), some of them didn’t even exist, we will work with BTC, LTC and DASH using Coimetrics.io.
What we can clearly notice is how the cryptocurrency market dipped without giving much fight probably because we have more experienced traders and investors (fighting less the downside). Something also interesting is how the Market Cap was quite stable above the Realized cap and then we saw what can be consider has the final capitulation (many will disagree on that but looking at the MVRV ratio we can see a strong reaction at the same lows).
Nevertheless the big questions remain the same. Will we go lower? Is this the bottom? Will we see a W shaped bottom or something else? Looking at some patterns on this MVRV Ratio we can expect something different and probably with less downside as we move higher (if we can keep moving higher). In 2015 the Realized Cap was tested 2 times on the way up, before a break (on the third attempt) but on the way down the Realized Cap also was a strong support while in this Bear Market we didn’t saw the same behaviour.