Since the FTX collapse in November 2022 – the MVRV Z-Score was -0.24 – Bitcoin has risen continuously. Almost a year later, the index broke through the value of 1 for the first time. That means: Bitcoin has been overvalued according to this definition since November 2023.
However, it is unlikely that the price will correct again. That thinks too @OnChainCollege. In an X article, the on-chain analyst explains that the MVRV indicator is currently still recording low values compared to previous bull markets.
“I think most people don’t understand how high the price can go in this cycle if this chart is even remotely based on the past,” said the analyst.
The MVRV may be considered overvalued above a value of 1. However, it is unsuitable as a sole, short-term tool for trading decisions. It must always be seen in a larger context.
You can find out what else BTC investors should know about the MVRV index and what the cryptocurrency is doing in general in the new BTC-ECHO Bitcoin Report.
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