Bitcoin’s MVRV metric, a key indicator of over- or under-valuation, has fallen to its lowest level since late 2022, following the FTX collapse. Analysts noted a similar reading preceded a 67% price surge historically. While signs of market stabilization are emerging, including returning ETF inflows, overall crypto sentiment remains weak with prices consolidating in a defined range.
A critical Bitcoin valuation metric has reached a level not seen since the 2022 bear market. The 365-day MVRV ratio, which compares market value to realized value, is now at the same point recorded after the FTX collapse, according to market intelligence platform Santiment.
Following that previous oversold condition, Bitcoin’s price increased by 67% over three months. “This is typical when average returns are significantly below the average value for what is historically expected,” the firm stated.
Analysts concluded that a significant market move could be imminent. They <a target=”_alto=”_blank” href=”https://x.com/santimentfeed/status/2031808472379973819” target=”_blank”>stated, “When this powerful indicator reveals a divergence we haven’t seen in over 3 years, pay attention.”
Separate analysis from Glassnode noted early signs of stabilization for Bitcoin. The on-chain analytics firm reported that spot demand is recovering as exchange-traded fund inflows return.
Bitcoin has been trading between $63,000 and $72,500 for over a month. The price currently sits between key support at $54,400 and resistance at $78,400.
Several market signals suggest a potential shift in momentum. These include positive ETF flows, spot buyers absorbing sell pressure, and easing options market volatility.
“The market appears to be shifting from forced deleveraging toward early stabilisation, with scope for recovery if spot demand continues to build,” Glassnode concluded in its weekly report. The total cryptocurrency market capitalization remains at $2.45 trillion.
Bitcoin briefly topped $71,000 before retreating to around $69,400. Ethereum held just above $2,000 while most alternative cryptocurrencies showed little movement.
Overall market sentiment continues to be weak. Research firm 10x Research reported that trading volumes are near their lows.
