The MVRV ratio, which measures the valuation of Bitcoin compared to its realized price, has entered favorable territory as the cryptocurrency continues its recovery. Despite a drop in price to $60,700 last week, Bitcoin has managed to bounce back above $67,000, indicating a bullish momentum. This, along with an analysis of the MVRV ratio, suggests that Bitcoin’s price could continue to rise.
Data provider IntoTheBlock shares this sentiment, explaining that a higher MVRV ratio indicates that an asset may be overvalued and nearing its peak. On March 12, when Bitcoin reached its all-time high, the MVRV ratio surged to 2.75, approaching the historical peak level of 3. However, a sell-off occurred at this level, causing prices and the MVRV ratio to decline. Currently, Bitcoin’s MVRV ratio stands at 2.34, leaving room for further price increases in the near future.
Bitcoin’s recovery over the weekend has set it on track to revisit its all-time high before the halving. With a 6% gain in the past 24 hours, Bitcoin has been supported by institutional buying from companies like MicroStrategy and the introduction of Bitcoin ETFs. Industry experts predict that this trend will continue, with Bitcoin’s price potentially reaching $100,000 by the end of the year.
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