Bitcoin's MVRV Z-Score Signals Major Market Milestone at 7-Month Peak

Data tracked by Glassnode and reported by ChainCatcher reveals that Bitcoin’s MVRV Z-Score has climbed to 0.239, marking its highest level in seven months. This technical indicator provides crucial insight into whether the world’s largest cryptocurrency is trading above or below its intrinsic value.

The MVRV Z-Score operates as a relative valuation metric calculated through a specific formula: (Market Cap - Realized Cap) divided by the Standard Deviation of Market Cap. The “Realized Cap” itself is derived from on-chain transaction data, representing the aggregate value of every Bitcoin based on when it last moved. This methodology grounds the analysis in actual blockchain activity rather than speculative market sentiment.

What the Rising MVRV Z-Score Indicates

When the MVRV Z-Score climbs substantially above zero, it suggests that Bitcoin’s current market capitalization has become inflated relative to its fundamental on-chain value, signaling potential overvaluation. Conversely, negative or very low readings point to the opposite condition, where the asset may be trading below its intrinsic worth. At 0.239, the current reading sits in a moderate range but demonstrates meaningful upward momentum from recent months, providing investors with a key reference point for assessing market extremes and timing strategic decisions in their Bitcoin positions.