Irrespective of hitting its exclusive all-time high price, Bitcoin may see additional growth. As per the latest insights from CryptoQuant, Bitcoin’s MVRV ratio signifies that the price is far from being overstretched in comparison with the cost basis. The on-chain analytics provider took to its social media account on X to discuss this development.
Bitcoin’s MVRV Ratio Implies the Room for Additional Price Rallies Ahead
CryptoQuant mentioned that the present Market Value to Realized Value ratio of Bitcoin highlights that its price has not yet been overloaded. This chief metric indicates that the top crypto asset is still undervalued in line with the historical peak points. This reportedly implies that the present price rally of Bitcoin may be going through early phases.
The MVRV ratio serves as a broadly used instrument to assess asset valuation. It draws a comparison between the market value of Bitcoin and the realized value thereof. Based on the historical data, when the respective ratio touches extreme peaks, the price is almost a market top. On the other hand, a low MVRV ratio denotes that the chief crypto asset may be considerably undervalued.
The analytics platform pointed out that the MVRV ratio has not yet reached peaks normally witnessed amid overheated markets. This suggests that Bitcoin still has a significant potential for an upward movement before touching a speculative bubble stage. The new all-time high of Bitcoin doesn’t signify any overvaluation relative to the token’s cost basis. Its current price is standing near the traders’ purchase cost. This indicates that Bitcoin is not overheated.
The Supportive Market Fundamentals Encourage Short and Long-Term $BTC Investors to Enter the Rally
This scenario backs the idea that the value of Bitcoin is mostly aligned with the overall market fundamentals. It offers an optimistic indication for new and long-term investors looking to enter the rally. The present ratio additionally signifies that $BTC is held by several traders at or around the entry price. This could ignite abrupt sell-offs and assist sustain the ongoing upward momentum.
Many analysts think that the price rally of Bitcoin has been mostly backed by surging institutional interest. Additionally, the release of exclusive products like spot $BTC ETFs, combined with the macroeconomics, favors Bitcoin’s price progress. According to CryptoQuant, the new high of Bitcoin could be the start of a relatively sustained upward momentum.
