Bitcoin’s price still has room to grow, according to a crypto analyst. Chapo, CEO of Assure DeFi who is also a known crypto expert, used the Market-Value-to-Realized-Value (MVRV) ratio, a key metric, to evaluate Bitcoin’s price. He believes that the cryptocurrency is not yet in overvalued territory. Historical data suggests Bitcoin’s MVRV must climb higher before a market top is confirmed.
MVRV Ratio Current Reading
The MVRV ratio compares Bitcoin’s market capitalization to its realized capitalization. A reading above 3.7 has often marked price peaks, while levels below 1 have signaled market bottoms. Right now, Bitcoin’s MVRV ratio stands at 1.95. This number is well below the “danger zone,” meaning the market may not be overheated yet.
“I predict a peak MVRV this cycle around 3.2, meaning we have another bullish year in 2025 ahead before we reach the pico top this cycle,” Assure DeFi CEO and crypto analyst Chapo disclosed in an X post.
Chapo explained that Bitcoin’s price could continue to rise before the MVRV reaches levels seen in past cycle tops. He also pointed out that the ratio often moves in stages, and Bitcoin has not yet reached the final leg of its growth cycle.
Remove emotions. Focus on what the data says. Simplify your thesis.
MRVR is my favorite indicator to use to determine where we are in a macro cycle. MRVR = Market Value to Realized Value (Ratio).
Bitcoin MRVR shows the ratio between the current price and the average price of… pic.twitter.com/JWe6V4B50x
— Chapo (@El_Crypto_Chapo) February 26, 2025
Past Peaks And Market Trends
When traders look back at past market movements, the MVRV ratio has given them useful information. When Bitcoin prices were going up in the past, the number went above 3.7 before they started going down. When the number fell below 1, on the other hand, Bitcoin was often undervalued, which meant there were chances to buy.
Based on the numbers, the market seems to be in a medium phase right now. This fits with the idea that Bitcoin’s price could keep going up until 2025, when it will hit its highest point. Still, it’s hard to say exactly how prices will move because market factors can change quickly.
How Investors View The Data
The MVRV ratio is one way that buyers figure out how much Bitcoin could be worth. Some buyers think that the low price of 1.95 means Bitcoin has room to grow. Others are still cautious, citing outside factors such as shifts in market regulation, changes in the world economy, and market sentiment.
What Could Happen Next
For the time being, traders are keeping a close eye on whether the MVRV ratio keeps rising. It can be an indication of the next market peak if it surpasses cycle highs. The future of Bitcoin is still anybody’s guess until then.
Featured image from Pexels, chart from TradingView
