Federal Reserve Chairman Jerome Powell’s comments affect cryptocurrency market, Bitcoin price fluctuates

According to U.Today, the recent sharp drop in the MVRV ratio of Chainlink (LINK) in the cryptocurrency space has attracted the attention of traders and analysts. Well-known crypto analyst Ali Martinez pointed out that Chainlink’s MVRV 30-day ratio drop has always been a good time to buy, with the average return being about 50%.

He noted that LINK currently has a 30-day MVRV ratio of -17.54%, which could be another opportunity to buy LINK. The MVRV (Market to Realized Value) ratio is a metric used to evaluate an asset's market value relative to its realized value. When this ratio drops significantly, it usually indicates that the asset is undervalued and may be an attractive buying opportunity. However, despite Martinez’s optimism about LINK’s price, Chainlink’s current market performance is less than satisfactory.

The latest data shows that the price of LINK is $13.35, up slightly by 1.37% in the past 24 hours. However, in the past week, the price of the cryptocurrency has plummeted by 21.61%. In addition, Chainlink’s 24-hour transaction volume also dropped significantly, decreasing by 39.30%. This drop in trading activity typically means a reduction in investor interest and liquidity, potentially increasing a coin’s volatility.

However, Martinez remains optimistic about LINK’s price. While the market as a whole remains unpredictable, subject to a variety of factors, including regulatory developments and market sentiment, a significant drop in Chainlink's MVRV ratio may indeed provide a good time for investors to consider entering or expanding a position in the cryptocurrency. . However, investors and traders should conduct thorough research and consider their risk tolerance before making any investment decisions, especially in the highly volatile crypto market.