Bitcoin Approaches Undervaluation as MVRV Ratio Hits 1.1

Bitcoin is approaching an undervaluation zone, with its market-value-to-realized-value (MVRV) ratio reaching 1.1, according to CryptoQuant data. This marks the first time in over three years that the MVRV ratio has neared this level, following a downtrend since Bitcoin’s October 2025 peak. The cryptocurrency recently dipped below $60,000, a critical support level in recent cycles.

Analysts note that an MVRV ratio below 1 typically signals undervaluation, suggesting Bitcoin is nearing a potential accumulation phase. The current Z-score of the MVRV ratio has reached historic lows, indicating possible bottoming behavior similar to past bear markets. However, experts caution that no single indicator guarantees a market bottom, emphasizing the need for a broader analysis of on-chain metrics and market conditions.