Analyst Matt Rowe compared the dynamics of the Mayer Multiple indicator to the historical profitability of investing in bitcoin. He concluded that buying cryptocurrencies at current levels could bring “X” to patient traders.

#Bitcoin Mayer Multiple: Price / 200-Day Simple Moving Average (SMA) of Price.

It’s currently at levels we haven’t seen since the 2011 and 2015 bear markets.

So if we buy from here and hold N days, what kind of (historical) returns can we expect?

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— Matt Rowe (@mattrowsboats) 18 June 2022

The Mayer Multiple indicator has dropped to 2011 and 2015 levels. This shows that there is a significant difference between the current digital gold price and the 200-day moving average. The latter is perceived by many as a kind of boundary between bull and bear markets.

According to Rowe, if you buy bitcoin for $1,000 from the current measure and hold the asset for 60 days, the amount received at “exit” will be in the range of $1,000 (breakeven point) to $2,300.

🍊 60 days from now, we’ve historically seen returns between 1x (break-even) and 2.3x.

So if you invested $1,000 now, you are likely to potentially have a history of $1,000 to $2,300 in 60 days (how can we even think about that).

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— Matt Rowe (@mattrowsboats) 18 June 2022

Other things being equal, holding an asset for 180 days historically yields 1.9x-50x. So the investment cost per $1000 will be in the range of $1,800-$50,000.

🍊 180 days from now, we’ve historically seen returns between 1.9x and 50x. 😳

So if you invested $1,000 now, you have a good historical chance of having the potential to be between $1,800 and $50,000 within 180 days.

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— Matt Rowe (@mattrowsboats) 18 June 2022

According to Rowe, a similar investment per year would translate into between $50,000 and $250,000.

🍊 365 Days from now, we’ve historically seen returns between 50x and 250x. 😳😳😳

So if you invested $1,000 now, you are likely to have a background of $50,000 to $250,000 in 365 days.

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— Matt Rowe (@mattrowsboats) 18 June 2022

The researcher emphasized that the calculations are based entirely on historical returns and this does not guarantee equally impressive results in the future.

“A macroeconomic recession has kicked in, this time it may be different,” said Matt Rowe.

He added that in the context of the current market situation, it is bearish. However, in the long run, Bitcoin’s probability of growth is higher than in the short run.

Earlier, Mike Novogratz, head of Galaxy Digital, expressed the view that the driving force of the new Bitcoin rally will be policy relaxation. fed.

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