Our powerful Bubble-O-Meter Crypto tool allows you to compare Bitcoin with other cryptocurrencies and tokens. This can be useful when evaluating the underlying assets which form the basis of our crypto CFD products, and to find the ones that are most over or under-priced.
Our Bubble-O-Meter is a simple and effective way to provide you with fast Cryptocurrency price analysis. It will (hopefully) help you understand a little bit more about how to value cryptocurrencies in general. This tool allows you to compare Cryptocurrency prices relative to Bitcoin, with the help of SAP (Supply-Adjusted Price) and VAP (Volume-Adjusted Price).
SAP price tells us what the price of coin X would be if it had the same circulating supply as Bitcoin.
VAP price tells us what the price of coin X would be if it had the same trading volume as Bitcoin.
Essentially, the SAP / VAP ratio is the key metric of a coin`s "bubbleness" – the higher this parameter is, the more the coin can be overpriced, relative to Bitcoin.
The rows in the table are colour-coded as follows:
Red = SAP / VAP > 100%
Green = SAP / VAP <100%
We also provide some extra metrics here, such as 24 hour liquidity – which shows the ratio of the coin`s market capitalisation to its daily trading volume.
In order to be less Bitcoin-biased, you can adjust the Bitcoin price using the bar at the top of the page.
When conducting Cryptocurrency market analysis, it’s clear to see that some established projects, such as Bitcoin and Ethereum – which have really set the standard of potential profitability – can often look too expensive. There are also thousands of cheaper coins with more appealing prices.
A lot of people are new to cryptocurrencies, with the vast majority of traders first entering these markets in 2017. It’s too easy for inexperienced traders to fall into the price trap and buy into a coin that looks cheap, completely disregarding basic economic measurements, such as taking the supply of coins into account.
This results in Cryptocurrency markets being drastically overpriced, with capitalisations of either cryptocurrencies, utility tokens and even meme coins skyrocketing to billions of dollars!
The aim of our Bubble-O-Meter is to highlight the fact that there are coins – including those in the top 10 – that are overpriced relative to Bitcoin by such a large magnitude that they may dwarf the speculative part of Bitcoin itself.
Are we experiencing a Cryptocurrency bubble? Only time will tell. Our cryptocurrency tool simply highlights the cryptocurrencies which are likely overpriced to a greater extent than others.
Additionally, this tool can be used for Bitcoin’s price analysis relative to other cryptocurrencies, as well as for searching potentially underpriced ones relative to Bitcoin.
We offer CFDs on Cryptocurrencies on the world`s most popular trading platforms – MetaTrader 4 and MetaTrader 5. You can trade Cryptocurrency CFDs with a leverage of up to 1:5, with short-selling enabled for our entire product offering! Additionally, most of the underlying cryptocurrencies of the offered CFDs are frequently "green" – or at least near "green" – in our Bubble-O-Meter!
Please be aware that the pricing of cryptocurrency CFDs, such as BTCEUR, ETHEUR and others, is derived from specific cryptocurrency exchanges, which means that the market depth is limited to what is available in the order books of such exchanges. These exchanges are not regulated and do not provide the protections afforded by financial regulation. These markets are immature, extremely volatile at all times and limited in terms of liquidity. The pricing engines of cryptocurrency exchanges may experience delays, interruptions which can be caused by numerous potential issues. Any person wishing to trade or invest in cryptocurrency CFDs should have detailed and updated knowledge of related blockchain technologies. Trading and investing in cryptocurrency CFDs involves a HIGH RISK of a loss of funds due to market volatility, execution issues and industry-specific disruptive events, such as hard forks, regulatory bans, the activities of hackers, mining cartels and other malicious actors within cryptocurrency ecosystems.