What is the impact of the shiller ratio on cryptocurrency investments?

1 answers

• Dec 17, 2021 · 3 years ago
  The shiller ratio, also known as the cyclically adjusted price-to-earnings (CAPE) ratio, is a valuation metric that compares the price of an asset to its average earnings over a specified period, typically 10 years. In the context of cryptocurrency investments, the shiller ratio can provide insights into the valuation of different cryptocurrencies. A high shiller ratio suggests that a cryptocurrency may be overvalued, while a low shiller ratio indicates potential undervaluation. However, it's important to note that the shiller ratio is not a foolproof indicator and should be used in conjunction with other analysis techniques. At BYDFi, we consider the shiller ratio as one of the factors in our investment analysis, but we also take into account other fundamental and technical factors to make informed investment decisions.
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