Bitcoin Valuation Dives Below Historical Average: Will $57,600 Be the Tipping Point?

Bitcoin's valuation has dropped significantly below its long-term average, but it hasn't yet entered a broad capitulation phase. According to on-chain analyst Axel Adler Jr., Bitcoin's MVRV Z-Score has fallen to 0.40-0.41, far below the average of 1.69.

This sharp decline in valuation is concerning, but Adler notes that it hasn't yet reached zero. He also points out that in past cycles, negative readings coincided with severe undervaluation and market stress.

The adjusted realized price of Bitcoin is currently $57,600, which represents the average acquisition cost of active investors. If this level is broken, it could weaken market structure further.

Adler also notes that a sustained recovery above $72,000, along with a return of the MVRV Z-Score to its average level of 1.69, could signal that valuation expansion has resumed.