Bitcoin’s MVRV (Market Value to Realized Value) ratio has dipped into the critical 1.8–2.0 range, historically known for signaling market bottoms. The MVRV ratio is a widely used metric that compares the current market price of Bitcoin to the average price paid for all BTC in circulation. When this ratio falls to lower levels, it often indicates that many investors are holding losses — a condition typically seen during periods of extreme fear.
The recent plunge in MVRV comes amid a broader wave of liquidations and a sharp pullback in crypto prices. This pattern aligns with previous mid-term bottoms, hinting that the worst of the sell-off might be behind us.
Fear and Liquidations Dominate Market Sentiment
The crypto market has been hit hard in recent weeks, with traders facing forced liquidations due to high volatility and leveraged positions. As panic sets in, prices often fall below fair value, creating opportunities for strategic investors to accumulate assets.
The MVRV ratio dipping into this “danger zone” doesn’t just reflect pain—it has historically acted as a contrarian indicator, pointing to undervaluation and the beginning of recovery phases.
Bitcoin’s MVRV Ratio Signals Possible Bottom Formation Amid Fear and Liquidations
— CryptoQuant.com (@cryptoquant_com) November 6, 2025
“Historically, when MVRV falls to the 1.8–2.0 range, it often coincides with mid-term market bottoms or early recovery phases.” – By @xwinfinancepic.twitter.com/IyYAMO7uof
Could a Recovery Be on the Horizon?
While it’s too early to call a full market reversal, the data suggests Bitcoin might be nearing a local bottom. Previous cycles show that when MVRV touches these levels, prices often stabilize and begin to rebound in the following weeks or months.
Investors watching on-chain data closely may see this as a sign to prepare for a potential turnaround. However, macroeconomic factors, market liquidity, and investor sentiment will also play crucial roles in shaping the next phase of Bitcoin’s trajectory.