Bitcoin
It reached new maximums of all time just above $ 112,000 on Wednesday, although the increase was only marginal compared to the previous peak. Despite the corporate adoption wave, with public companies add Bitcoin to their balances.
The data in the chain suggest that Bitcoin has more space to execute compared to the previous cycle. A useful metric in this analysis is the Z MVRV score, which helps assess whether Bitcoin is overvalued or undervalued in relation to what could be considered its fair value.
Unlike a traditional Z score, the Z MVRV score compares the market value with the value carried out. When the market value, calculated as the assessment of the network based on the spot price multiplied by the offer, is significantly above the value made, which reflects the entry of accumulated capital in the asset, this has historically indicated the market tops [red zone]. On the contrary, when the market value is well below the value carried out, the market fund has often indicated [green zone].
The Z MVRV score is defined as the relationship between the market capitalization difference and the lid performed, and the standard deviation of market capitalization, expressed as [market cap minus realized cap] divided by the standard deviation of market capitalization. The standard deviation is accumulated from the first data point available to the present, so it is a long -term measure.
Currently, the Z MVRV score is located 2.4. In the minimums of the previous bearish market, Bitcoin has registered scores below zero, as seen in 2015, 2019 and 2022. Meanwhile, the TOPS cycle have historically occurred when the score reaches 7 or more, as was the case in 2017 and 2021, according to Glassnode data.
Although this is only a data point, it indicates that Bitcoin still has a significant potential for more rise compared to the previous cycles.
Read more: This graphic points to a 30% bitcoin price boom ahead: technical analysis
