MVRV Z-Score Hits Record Low, Signaling 'Undervalued' State
Bitcoin’s Market Value to Realized Value (MVRV) Z-score has reached its lowest-ever level on a rolling two-year basis, suggesting the asset is more undervalued than during prior bear market troughs. The MVRV Z-score measures the ratio of Bitcoin's market capitalization to its realized capitalization—the price at which each coin last moved. This indicator helps identify periods of significant over or undervaluation. According to analysis from crypto trader Michaël van de Poppe, the current Z-score is lower than the readings from the market bottoms in 2015, 2018, the COVID-19 crash in 2020, and the 2022 lows.
That's how deep we're in the bear market, and yes, we're close to the end of it.
— Michaël van de Poppe, Crypto Trader and Analyst
Price Dips to $81,040, Testing Market Conviction
The strong on-chain value signal contrasts with recent price performance. Bitcoin's price fell to a two-month low of $81,040 this week, reflecting broader weakness across risk assets. At the time of writing, BTC was still trading down nearly 2% on the daily open. Analysts are also watching the precious metals market, where gold and silver experienced a sharp drop of 10-15% over the past 24 hours. Van de Poppe suggests this pullback in metals could be a precursor for Bitcoin to consolidate before its next major move, presenting a potential trigger for a market floor.
