A Primer on Bitcoin Investor Sentiment and Changes in Saving Behavior
Topics include:
- A history of bitcoin valuation research
- Measuring changes in saving behavior
- NVT, NVM
- Relative Unrealized P&L
- Realized Capitalization
- Liveliness; HODLer Net Position Change
- HODLer Position Change (โinsider buying/selling)
EXCERPT
In our conversations with institutional investors, we often get asked the question โWhat is your model to value Bitcoin?โ. Investors want to know what the fundamental drivers are behind BTC price gyrations, and whether at a given time Bitcoin is overvalued, undervalued, or at fair value. The new measures we suggest here are tools to help with that judgement. We build on work that goes back to 2011, and use the Bitcoin blockchain to extract market information not generally available for traditional commodities.
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