Bitcoin reached a new all-time high of $111,970 on May 22, continuing its bull run. The price has since retraced due to the US Government's tariff announcements. However, investors remain optimistic about a potential continuation of the uptrend.
Crypto analyst Bilal Huseynov observed an unusual Market Value To Realized Value (MVRV) ratio development. The MVRV ratio did not reach peak values seen in previous bull cycles when Bitcoin set new ATHs. This suggests a positive difference in the current bull cycle.
In previous bull cycles (2013, 2017, 2021), the MVRV ratio reached values between 3.5-4.0 when Bitcoin achieved new ATHs. This time, the MVRV ratio peaked at 2.4 after surpassing $109,000. Huseynov attributes this to a disproportionate rise in Realized Cap compared to Market Cap, indicating a higher cost basis due to a high volume of Bitcoin changing hands at higher prices.
Huseynov believes this is a positive signal for Bitcoin's long-term development. It indicates a stable market even at ATH prices, with less hype-driven overvaluation. Stronger market hands, such as long-term and institutional holders, may be contributing to this stability, showing long-term market confidence.
Currently, Bitcoin is trading at $108,397, down 2.50% in the past day. However, it is up by 17.65% in the past month.
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