Bitcoin is trading well below its historical valuation range, but a comparison between its realized value and its current market valuation shows signs of easing selling pressures.
Data from CryptoQuant shows BTC’s MVRV Z-Score sitting near 0.42, substantially below its long-term average of 1.7. The indicator has been under that historical mean for the past 30 days and briefly dropped to about 0.185 on June 30, its weakest reading this cycle.
Bitcoin Valuation Near Historic Lows, No Capitulation
Just a few days before the Fed’s interest rate decision, Bitcoin is changing hands around $65,000, extending weeks of consolidation between $64,000 and $66,000 after a 15% drop in price over the past three months, according to CoinGecko.
The MVRV Z-Score compares Bitcoin’s market value with its realized value, an analytical angle that gauges if the asset is trading above or below its historical fair value. High readings have historically accompanied market tops, while negative readings appeared during deep bear-market capitulation.
As seen in the latest chart updates, the score is lingering just above zero, preceded by a steady decline since late 2025. It has yet to enter negative territory despite the prolonged weakness, where previous market cycles have found their definitive bottoms.
During the late-2022 bear market, the indicator fell below 0 for several weeks as Bitcoin traded near $16,000-$17,000, marking a capitulation phase before recovering to price levels of above $30,000 in May 2023.
The current reading could mean the top coin by market cap is undervalued at its $65,000 price at the time of reporting, but it has not experienced the same panic-driven selloff that characterized the previous cycle bottom. Holders have not sold their coins aggressively enough to reach a capitulation point.
According to trader Axel Adler Jr.’s quicktake, a recovery in the Z-Score toward its historical average of 1.7 would spell improving valuation conditions. Conversely, a break below June’s low near 0.185 and into negative territory would cue BTC’s further deterioration before a potential bottom forms.
In Crazzyblockk’s June 29 analysis for CryptoQuant, he noted that when Bitcoin traded for around $60,000, the MVRV Z-Score was approaching valuation zones previously seen during deep market resets after excess speculation had been removed. Bitcoin has gone up by about 6% since, reinforcing his market theory that classic capitulation might not occur.
Market Profit Taking Replaces Loss Selling
Bitcoin’s seven-day realized profit and loss chart, showing the net amount investors have locked in the network, spent 23 of the last 30 days below zero. The coin had realized net losses of approximately $8.5 billion in June, before another wave of losses of nearly $3 billion in mid-July.
July’s activity has reversed last month’s trend and recorded positive PnL figures over the past week, gaining between $400 million and $500 million. The latest reading stands near $239 million, as seen in CryptoQuant’s Bitcoin PnL chart.
Analyst Crazzyblockk explained that, even though investors are no longer realizing losses at the same pace as they were towards the end of June and Bitcoin’s selling pressure is cooling down, the metric does not confirm that the market has completed a cyclical bottom.
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