Bitcoin price has performed strongly this year, rising 120%, outperforming popular assets such as the Nasdaq 100 and S&P 500 indices.
Bitcoin (BTC) has retreated from its all-time high of $108,427 to $97,000 after the Federal Reserve pointed to just two interest rate cuts in 2025.
The MVRV score shows that the Bitcoin price is still favorable
The recent Bitcoin decline negatively impacted investors, as evidenced by spot ETF flows.
According to SoSoValue, Those funds recorded net outflows of $276 million on Friday, a day after they lost $680 million in assets. That was a sign that some investors believe Bitcoin may have peaked.
Nevertheless, the Market Value to Realized Value indicator suggests that Bitcoin price is still cheap even after hitting a record high last week.
According to CoinGlass, the MVRV Z-Score has fallen from last week’s high of 3.3 to 2.84. Historically, an MVRV-Z score below 3.7 is a sign that an asset is undervalued.
The MVRV Z-Score is an important indicator that looks at the market value and relative value of a coin. It is calculated by subtracting the realized market capitalization from the current value and then dividing the value by the standard deviation.
Bitcoin had an MVRV value of 3.03 in the last major correction in March this year and an MVRV value of 7 in the previous major correction in January 2021.
Therefore, this value is a sign that the coin could recover strongly in the next few weeks. As we wrote in a recent BTC forecast, The cup and handle pattern suggests a rise to $122,000 in this upcycle.
