Bitcoin’s price exceeded popular assets like the Nasdaq 100 and the S&P 500 indices, jumping 120%. Bitcoin’s Price Drop: Following the Federal Reserve’s hint at just two interest rate cuts in 2025, Bitcoin’s (BTC) price tumbled below $97,000 from an all-time high of $108,427.
MVRV score indicates a low Bitcoin price
Bitcoin spot ETF flows indicate investors were affected by the drop. On Friday, SoSoValue reported $276 million in fund outflows a day after losing $680 million. Bitcoin may have peaked, say investors. The Market Value to Realized Value indicator implies Bitcoin is still inexpensive after last week’s record high. MVRV-Z at 2.84, down from 3.3 last week. Previously, an MVRV-Z below 3.7 indicated undervaluation.
Key coin market value and relative value indicator MVRV-Z. Subtract realized market capitalization from circulated market value and divide by standard deviation. Bitcoin’s March MVRV was 3.03, and January 2021’s big correction was 7. This score indicates a strong coin rebound in the following weeks. Our BTC estimate shows a cup and handle pattern leading to $122,000 in this bullish cycle.
BTC faces other strong fundamentals
Coin foundations are sound. Bitcoins in circulation have decreased to 2.24 million, a multi-year low. Exchanges had 2.72 million coins in September. Higher numbers of investors are buying and storing Bitcoins in self-custody wallets. These investors have accumulated more than $109 billion in ETF assets. MicroStrategy and Marathon Digital have also been buying Bitcoins this year.
Other catalysts for Bitcoin include the stablecoin market valuation rising to roughly $210 billion from $122 billion a year earlier. An increase in stablecoin value indicates increasing investor interest in cryptocurrencies. Meanwhile, Bitcoin’s yearly inflation rate has fallen to 1.12% from around 12% in 2015. Bitcoin’s Price Drop: Due to halving events and growing mining difficulty, inflation has plummeted.
Summary
Bitcoin fell from $108,427 to below $97,000 after surging 120%, surpassing the Nasdaq 100 and S&P 500, when the Fed hinted at interest rate cuts. MVRV reveals Bitcoin is still inexpensive, indicating a price rebound despite this fall. MVRV-Z dropped to 2.84, indicating a strong recovery. Bitcoin circulation decline and self-custody wallets are good indications—stablecoins and lower inflation help Bitcoin expand.
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