Bitcoin’s MVRV Flashes Rare Buy Signal – Bullish Long-Term Implications
A freak divergence in Bitcoin’s Market Value to Realized Value (MVRV) ratio just triggered what analysts call a ’generational buy signal.’ Here’s why crypto veterans are quietly stacking sats.
The MVRV anomaly explained: When this metric dips below historical norms, it typically precedes violent upside—like clockwork. The last time we saw this setup? Early 2020, before BTC ripped 600%.
Institutional déjà vu: Whale wallets are accumulating at levels not seen since the $3K COVID bottom. Meanwhile, Wall Street fund managers still can’t decide if crypto is ’digital gold’ or a ’speculative asset’—classic finance-sector paralysis.
The bottom line: Markets always overcorrect. This MVRV extreme suggests Bitcoin’s plumbing is primed for another liquidity supercycle. Whether traditional finance catches on this time? That’s their problem.
Bitcoin MVRV Stays At 2.4 Amid New ATH – What Could This Mean?
In a QuickTake post on May 23, BilalHuseynov shares an interesting insight on the Bitcoin market following recent on-chain development. Notably, the premier cryptocurrency hit a new all-time high at $111,970 on May 22 to ultimately confirm the validity of the current bull cycle.
Amidst this bullish development, BilalHuseynov notes an unusual event in that the MVRV ratio failed to reach the peak numbers associated with when bitcoin set a new ATH in previous bull cycles. For context, the MVRV measures the market cap of Bitcoin to the realized cap, i.e, the value of all Bitcoin at the last point of purchase. It is used to indicate trend reversals, as an MVRV ratio over 1 suggests overvaluation while a figure below 1 signals an undervaluation.
According to BilalHuseynov, when Bitcoin achieved a new ATH in 2013, 2017, and 2021 bull cycles, the MVRV ratio reached top values between 3.5-4.0. However, following the eclipse of the $109,000, the MVRV ratio has hit a peak value of 2.4. The crypto analyst explains that the reduced MVRV number can be linked to a disproportionate rise in Realized Cap compared to the Market Cap. This development can be attributed to the fact that a high volume of circulating Bitcoin exchanged hands at higher prices, thereby resulting in a higher cost basis.
Interestingly, BilalHuseynov explains this unusual development is a positive signal for Bitcoin’s long-term development, indicating a stable market even at ATH prices, that possesses less froth and no hype-driven overvaluation. Furthermore, there is the possibility that stronger market hands, i.e, long-term holders and institutional holders, are part of this new investors, suggesting long-term market confidence with no urgency for profit-taking.
BTC Price Overview
At the time of writing, Bitcoin is trading at $108,397 following the retracement in the past days. The premier cryptocurrency is down by 2.50% in the past day but up by 17.65% in the past month.
