According to Odaily, despite potential short-term setbacks, Bitcoin's robust fundamentals and favorable MVRV score suggest a positive long-term outlook. Data from CoinGlass indicates that the Market Value to Realized Value (MVRV) metric shows Bitcoin remains undervalued, even after reaching a historic high last week. The MVRV-Z score has decreased from 3.3 to 2.84, with scores below 3.7 historically indicating undervaluation. This score, calculated by subtracting realized market value from market capitalization and dividing by standard deviation, is a key indicator of a token's market and relative value.
In March of this year, Bitcoin's MVRV score was 3.03 during a significant adjustment, compared to 7 in January 2021. This suggests a potential strong recovery for Bitcoin in the coming weeks. Additionally, Bitcoin's fundamentals remain strong, with the circulating supply dropping to a multi-year low of 2.24 million BTC. In September, over 2.72 million BTC were held in exchanges, indicating a trend of investors purchasing and storing Bitcoin in self-custody wallets, with some accumulating ETF shares.
Another potential catalyst for Bitcoin is the increase in stablecoin market capitalization, which has surged from $122 billion a year ago to nearly $210 billion. Meanwhile, Bitcoin's annual inflation rate has steadily decreased from a peak of nearly 12% in 2015 to 1.12%, driven by halving events and increased mining difficulty.
