Bitcoin hit a new all-time high on Wednesday, just edging past its previous record. This surge was fueled by investors and companies investing more money. But, some key on-chain metrics suggest that Bitcoin’s current price might still be a long way from its actual peak.
Recent insights from CryptoQuant and ChainExposed indicate that the MVRV Z-Score and the short-term holder MVRV point to more upside potential. These metrics show that Bitcoin is still in a bullish position, even though some holders are beginning to cash in on their profits.
The MVRV Z-Score compares Bitcoin’s market cap to its realized cap and historical volatility. This score currently shows that Bitcoin, despite its high price, is not yet in extreme overvaluation territory.
It seems the current market is a lot more stable compared to past euphoric cycles. On top of that, the MVRV ratio has hit 2.26, which shows long-term holders are bullish. This kind of level usually hints at profit-taking and also indicates there’s a strong demand.
Short-Term Holders Stay Cautious but Hopeful
According to ChainExposed, short-term holders are around the 1.0 MVRV. This break-even point indicates much unrealized profit or loss happening. As a result, there is not much panic selling from newer investors.
Historically, when the MVRV spikes above 1.5 to 2.0, it often signals a correction. However, this current neutral range suggests there’s still some room to grow before it hits another cooling-off period.
The market is hot, with the global crypto market cap reaching $91 billion in a day to reach $3.42 trillion. Besides Bitcoin’s performance, this spike also mirrors strength in tech equities, showing increasing correlation.
Also Read: Crypto Short Traders Sees $470M in Liquidation as Bitcoin Spikes
