Bitcoin is approaching an undervaluation zone, with its market-value-to-realized-value (MVRV) ratio reaching 1.1, according to CryptoQuant data. This marks the first time in over three years that the MVRV ratio has neared this level, following a downtrend since Bitcoin's October 2025 peak. The cryptocurrency recently dipped below $60,000, a critical support level in recent cycles.
Analysts note that an MVRV ratio below 1 typically signals undervaluation, suggesting Bitcoin is nearing a potential accumulation phase. The current Z-score of the MVRV ratio has reached historic lows, indicating possible bottoming behavior similar to past bear markets. However, experts caution that no single indicator guarantees a market bottom, emphasizing the need for a broader analysis of on-chain metrics and market conditions.
Bitcoin Nears Undervaluation as MVRV Ratio Hits 1.1
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
