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Why is the ICT fair value gap considered an important factor in assessing the value of cryptocurrencies?

avatarmengen zhangFeb 19, 2022 · 3 years ago1 answers

What is the significance of the ICT fair value gap in evaluating the worth of cryptocurrencies?

Why is the ICT fair value gap considered an important factor in assessing the value of cryptocurrencies?

1 answers

  • avatarFeb 19, 2022 · 3 years ago
    The ICT fair value gap is a crucial factor in assessing the value of cryptocurrencies. It measures the difference between the market price and the fair value of a cryptocurrency. The fair value is determined by evaluating the fundamental factors that contribute to the cryptocurrency's worth, such as its technology, adoption rate, and utility. If the market price deviates significantly from the fair value, it suggests that the cryptocurrency may be mispriced. This gap provides insights into the market's sentiment and can help investors identify potential investment opportunities. However, it's important to note that the ICT fair value gap is just one of many factors to consider when evaluating the value of cryptocurrencies.