Bitcoin MVRV Falls to 1.1, Lowest Level of Current Cycle
Summary
- Bitcoin MVRV fell to 1.1, marking the lowest level of this cycle.
- Crypto Dan said MVRV has historically signaled the market is near a bottom when it falls below 1.
- Bitcoin briefly fell below $59,000 before trading at $60,248.18.
Forecast Trend Report by Period
Bitcoin’s market value to realized value ratio, or MVRV, has fallen to 1.1.
Crypto Dan, a CryptoQuant contributor, wrote on June 26 that Bitcoin’s MVRV recently touched 1.1, the lowest level of the current cycle. MVRV is calculated by dividing Bitcoin’s market capitalization by its realized capitalization. The lower the ratio, the greater the chance Bitcoin is undervalued.
Historically, an MVRV reading below 1 has signaled the market is near a bottom, he wrote. In 2015, 2019, 2020 and 2022, each move to 1 or below came close to a cycle low. When most investors are sitting on losses, that has typically been the strongest accumulation signal, according to the analysis.
Meanwhile, Bitcoin extended its losses on the day, briefly falling below $59,000 before reclaiming the $60,000 level. According to CoinMarketCap, Bitcoin was trading at $60,248.18 as of 3:46 p.m. in Seoul, down 2.28% from a day earlier.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul