MVRV-Z Score Bitcoin Breaks Below Lowest Level Since October 2022: What Does It Mean for the Market?

The Metrik MVRV-Z Score for Bitcoin has reached its lowest level in over three years, as analyzed by the Glassnode team through Chris Beamish. This event takes us back to October 2022, when the indicator was at the same low level. This phenomenon indicates that the Bitcoin market is undergoing a fundamental renewal in its valuation.

What Does the Score Drop Indicate?

The MVRV-Z Score is a metric that measures the ratio between Bitcoin’s market value and realized value—essentially showing whether the asset is trading above or below the average purchase price of holders. When this score drops to its lowest level since October 2022, it suggests that Bitcoin’s price is approaching fair market value.

Data from NS3.AI shows that this decline previously correlated with different market conditions. In October 2022, Bitcoin was around $29,000, reflecting a cooling period after a previous speculative surge. Currently, with BTC price reaching $69.71K, the score decline creates a unique market dynamic—not signaling panic anymore, but rather healthy price re-consolidation.

Implications for the Bitcoin Market Cycle

The recurring pattern from October 2022 to now indicates that Bitcoin is entering a phase where market overheating is beginning to subside. The signal from the MVRV-Z Score reaching this low point is no longer a sign of drastic decline as before, but rather a market adjustment toward equilibrium. Investors should monitor this metric as a long-term market health barometer.