Compared to The 2017 Bull-Run Bitcoin Has a Lot More To Grow, Research Says

According to the BTC MVRV-Z score, a metric that has a strong relation with the asset’s price, the cryptocurrency has increased to its highest level in about three years. However, the last time the MVRV-Z reached a similar position, bitcoin exploded by 10x in the next six months.

BTC MVRV-Z score Suggests Further Increases?

The analytics firm Glassnode describes the MVRV-Z score as a metric that compares market value and realized value to assess when an asset is overvalued or undervalued.

Essentially, this means that when the underlying asset’s market has experienced a sharp price movement upwards in a relatively short time and is significantly higher than the realized value, the metric indicates a market top (red zone). Naturally, the opposite development leads to a market bottom (green zone).

Bitcoin has been on a tear in the past few months, breaking barrier after barrier, tripling its value, and ultimately registering consecutive all-time highs – the latest one came at nearly $36,000.

As such, Glassnode revealed that the MVRV-Z score has increased from about 1 to 5 in the same timeframe – the highest level since the previous bull run in 2017/2018. However, the company’s graph reassured that the metric is still away from the red zone (activated at 7).

Consequently, Glassnode said that when the MVRV-Z score was at 5 during the 2017 cycle, BTC “made another 10x over the course of 6 months.” If history is to repeat itself now, a surge by ten-fold from bitcoin’s current price at $35,000 would mean $350,000 per coin.

Such a massive surge would result in a market capitalization of over $6.5 trillion – or three times higher than the world’s most valuable company’s market cap Apple ($2.1 trillion). Moreover, bitcoin would decrease the gap to gold’s market cap (about $11 trillion).

Miners Refuse To Sell; Bitcoin Whales Accumulate

It seems that miners and bitcoin whales also expect the bull trend to continue. BTC miners, the backbone of the cryptocurrency, have refused to sell their tokens despite the record-high prices.

Further data from Glassnode indicated that Miners to Exchange Flow (1-day Moving Average) had reached a 17-month low of 1.397 BTC. The previous record was in early November 2020 – approximately at the start of the currency rally.

Additionally, Santiment said that the number of BTC addresses containing at least 1,000 coins, also referred to as “bitcoin whales,” has reached a new all-time high of 2,323. The analytics company noted that “there may not be a more notable bullish metric than” the behavior of whales.