Bitcoin has slipped into a “cheap zone” as its market value to realized value, or MVRV, ratio falls to 1.1. Bitcoin.com says this is a 27-month low and links the metric to episodes that historically preceded major market bottoms.
The specific reference comes from Cryptoquant analysts, cited by Bitcoin.com. They note that bitcoin’s MVRV ratio is now “about 1.1” and that this reading “has historically preceded major market bottoms.” Cryptoquant’s framing is that investors are valuing the asset closer to what older coins were realized for, which tends to coincide with stronger drawdowns.
What “cheap zone” means here
MVRV compares bitcoin’s current market capitalization to the value realized when coins last moved. When MVRV drops, it generally implies the market is pricing bitcoin below the average cost basis of the coins that make up supply. That pattern does not guarantee a reversal. It does, however, mark a regime where capitulation and forced selling have often already done much of their damage.
Bitcoin.com’s article points to Cryptoquant’s observation that a 1.1 level is “not seen since 2023.” It also states that the 1.1 print represents a 27-month low. Both points matter because they place the move within a specific historical window rather than treating it as a one-off fluctuation.
The signal is statistical, not a calendar
Bitcoin.com is careful to present this as an analyst read of historical behavior. The desk takeaway from the cited Cryptoquant view is that this kind of MVRV decline has “preceded major market bottoms,” not that it triggers them.
Markets can keep grinding lower even after a “cheap zone” starts. There is no built-in mechanism in MVRV that forces short-term demand to reappear. The metric can only describe where price sits relative to realized value, and realized value itself shifts with each transfer of coins. So the ratio can stay low while sentiment stays ugly.
What to watch next
The next practical question is whether the metric can actually reverse rather than just bottom out. Bitcoin.com’s report focuses on the down move to 1.1 and the historical association to bottoms, but it does not give a confirmation rule. Traders and investors who use MVRV usually want to see the ratio stop falling and then move upward as the market reprices relative to realized value.
For readers, the more important point is to treat “cheap zone” language as a risk context tool. An asset can still carry downside risk even when a commonly cited on-chain valuation ratio is at a historically low level. The signal may help explain why bears are less rewarded at extreme levels, but it does not remove uncertainty.
Key facts from the report
| Metric | Current reading | What it was compared to | Source |
|---|---|---|---|
| MVRV ratio | ~1.1 | “Not seen since 2023” | Cryptoquant, via Bitcoin.com |
| MVRV change | Down to 27-month low | Historically preceded major market bottoms | Bitcoin.com and Cryptoquant |
Bitcoin.com frames the move as bitcoin entering a zone analysts have linked to past lows. The desk frames the same fact with less romance. This is a valuation metric hitting an extreme. It can line up with bottoms, but it does not call them with certainty.