Investor Confidence Grows as Crypto Market Resets for Long-Term Gain
The 1-year MVRV Z-Score in the crypto market has turned negative, signaling potential undervaluation and shifting market sentiment. The MVRV Z-Score, which evaluates the valuation of cryptocurrencies by comparing market cap to realized cap and normalizing the difference using standard deviation, has entered a historically significant range. This score suggests a reversal in speculative premium and may point to strategic buying opportunities for investors. According to the Newhedge.io analysis, a negative MVRV Z-Score typically indicates that the market cap has fallen below the realized cap, which could imply that prices are correcting after a period of overvaluation [1].
Bitcoin, the largest cryptocurrency by market cap, has experienced…
