After a big down week for the bitcoin price, it’s good to filter out the short term price action and review where we are in the grand scheme of things. One tool I like for this purpose is the Mayer Multiple, which is simply the current bitcoin price divided by the 200-day moving average.
With a price of 7229 and a 200-day MA of 9403, the current Mayer Multiple is 0.77. The Mayer Multiple has historically been higher than the current value 79% of the time. Note the multiple can rise by means of the moving average coming down as well as the bitcoin price moving up. Also, we are still above the multiple of ~0.5 at the cyclical low price of ~$3150 at the end of last year, and still a long way from the all-time low multiple of 0.24 in November of 2011. However, relatively speaking, bitcoin is quite ‘cheap’ today versus it’s historical Mayer Multiples.
Check it out for yourself.
Site to view the current Mayer Multiple:
Site with an explainer and backtesting of the Mayer Multiple: