- Daily high so far for Bitcoin at USD 5,478
- Glassnode says that Bitcoin is severely undervalued, posting a negative MVRC Z-score for the first time in 12 months
- NVIDIA is urging on GPU owners to contribute some computing power to the [email protected] project to help find a vaccine for coronavirus
Bitcoin markets are holding steadfast today, breaking past the USD 5,000 resistance and now staying around USD 5,200 levels for the past 12 hours, even registering a daily high so far at USD 5,478 (CoinDesk).
With all the selling pressure going on since the World Health Organization (WHO) formally announced a global pandemic of coronavirus, Bitcoin now is firmly undervalued and oversold.
In fact, a new trading indicator called Bitcoin’s market value to realized value (MVRV Z) score says that we are now approaching a major bottom for Bitcoin, especially with it having dropped 60% of its value in just three weeks. The MVRV Z-score fell below zero on Friday and as of yesterday was still standing at -0.18, according to data released by blockchain analysts Glassnode.
The MVRV Z-score metric is used by traders to find out when crypto valuations are overestimated, or in this case, underestimated. And the fact that this score has turned negative for the first time since this month last year, means that the digital asset is severely undervalued. Last week on Thursday it saw an eye-watering 39% drop in a single day, alongside massive bleeding across worldwide stock markets. Margin calls were triggered everywhere and traders liquidated positions in a domino effect sell off that affected even Bitcoin and other hard asset markets like gold and US treasuries.
MVRC Z basically looks at how Bitcoin’s market value is relative to the total dollar value of the supply in circulation. This is calculated by using daily average prices posted by major exchanges. Meanwhile, realized value is an estimated value paid for all coins in existence by adding the market value of coins at the most recent time they were transacted on the blockchain.
This realized value is believed to be more accurate in reflecting fair value as it adjusts for lost coins and those kept by HODLers, so MVRV Z-score, in other words, tells us how far we are deviating from realized value.
If that’s not good news for you, then you might like the fact that NVIDIA is now calling on all GPU crypto miners to divert some of their resources towards fighting the coronavirus global pandemic.
The US chip manufacturer has now launched a proposal for all of its users to use their computer resources to help the cause by directing computing power to the [email protected] initiative. The program has been running successfully for years, receiving public donations of unused GPU computing power that it then distributes to an international processing power network to research cures and treatments for various diseases, of which COVID-19 is now one.
The company extended the call on Reddit to other gaming industry companies, like Steel Series, NZXT and Razer. So far, the Twitter thread started by NVIDIA has received positive responses from the likes of MSI and Intel Gaming.
PC Gamers, let’s put those GPUs to work.
— NVIDIA GeForce (@NVIDIAGeForce) March 13, 2020
Though it was really gamers who were invited due to their powerful GPU capabilities, crypto miners are typically power users, with vastly superior technological and hardware resources when compared to normal users.
[email protected] will try and identify a protease that could act as an inhibitor of the virus or isolate an antibody and get more information on COVID-19’s mutation.
Image Courtesy: Pixabay