#Bitcoin Is Being Undervalued

That’s right—significantly lower than the real value. To be honest, I think this is truly a once-in-a-millennium opportunity in this space, when the indicators versus gold have already bottomed out (the lowest level ever). One statistical measure for this is the MVRV ratio. This ratio is calculated based on the relationship between the current market price and the realized average price. It shows whether many people holding the supply are at a loss and how deep those losses are. Therefore, it indicates whether that specific asset is undervalued or overvalued. A few key takeaways from this:

1. The previous bull market was the weakest one ever, which is fairly easy to understand because the MVRV ratio didn’t rise as high as expected. Since neither volatility nor the speed of price increases showed up, the correction doesn’t necessarily have to be as severe as in previous bear markets. Simply put: previous bull markets tend to pump harder, so the correction is also more painful. In the current case: time is a difficult period, especially if you’re sitting above the higher-risk curve in the altcoins—then it’s even harder.
2. Consistent with my earlier main thesis, the MVRV ratio shows an extreme undervaluation based on typical buy prices. It dismisses any predictions of further downside, because that’s always true in any extreme bearish market projection. Therefore, it suggests that the current MVRV ratio is identical to the MVRV ratio during the bear market lows of 2022, the COVID collapse, or 2018. Yes, everything could definitely go lower, but what happened after those phases? After 2018: +200% in one year. After 2020: +1700% in fourteen months. After 2022: +700% in two years. Be pessimistic, sure—but the data shows that better times are ahead, because history has proven these points.