TechFlow news, February 27 — According to Cointelegraph, Chapo, CEO of Assure DeFi and cryptocurrency analyst, stated that the Market Value to Realized Value (MVRV) ratio indicates further upside potential for Bitcoin in this cycle. "The MVRV peak in this cycle will be around 3.2, meaning we are still heading into a bull year in 2025 before reaching the cycle top."
Currently, Bitcoin's MVRV stands at 1.95, with Bitcoin priced at $84,416. Chapo noted that historically, when Bitcoin approaches the cycle peak, MVRV tends to rise sharply. On January 20, when Bitcoin hit a record high of $109,000, MVRV surged to 2.44; earlier this March, when Bitcoin reached $73,679, MVRV stood at 2.67.
Rising MVRV suggests more Bitcoin holders are in profit and may take profits. Chapo explained that when profitable holders sell to new buyers, the cost basis decreases, causing MVRV to decline. For instance, on September 7, when Bitcoin dropped to $53,949, MVRV fell to 1.71.
However, Julio Moreno, Research Head at CryptoQuant, holds a different view, suggesting that the MVRV indicator implies Bitcoin may experience further declines before resuming its upward trend.
