Bitcoin's price has had a strong performance this year, jumping 120%, beating popular assets like the Nasdaq 100 and S&P 500 indices.

Bitcoin (BitcoinIt fell to $97,000 from an all-time high of $108,427 after the Federal Reserve signaled only two interest rate cuts in 2025.

The MVRV result shows that Bitcoin price is still cheap

Bitcoin's recent decline has taken a toll on investors, as evidenced by spot ETF inflows.

according to SoSoValue, Net outflows from these funds reached $276 million on Friday, one day after they disposed of $680 million in assets. This was a sign that some investors believe Bitcoin may have reached the top.

However, the Market Cap to Realized Value Index indicates that Bitcoin's price remains cheap even after moving to a record high last week.

According to CoinGlass, the MVRV-Z score fell to 2.84 from last week's high of 3.3. Historically, an MVRV-Z number below 3.7 is a sign that an asset is undervalued.

The MVRV-Z score is an important indicator that looks at the market cap and relative value of a coin. It is calculated by subtracting the realized market value from the traded market value and then dividing the number by the standard deviation.

Bitcoin had an MVRV score of 3.03 in the last major correction in March of this year, and 7 in the previous major correction in January 2021.

Therefore, this result is a sign that the currency may rebound strongly in the next few weeks. As we wrote recently Bitcoin forecast, The cup and handle pattern indicates a rise to $122,000 in this bullish cycle.

BTC is facing other strong fundamentals

The currency also has some strong fundamentals. As seen below, the number of bitcoins in circulation has fallen to a multi-year low of 2.24 million. There were more than 2.72 million coins on exchanges in September this year.

This indicates that more investors are buying and storing bitcoins in self-custodial wallets. Some of these investors are those who accumulate ETFs, which now have more than $109 billion in assets. Companies like Marathon Digital and MicroStrategy also continues To collect Bitcoins this year.

MicroStrategy now has over 439,000 coins in stock.

Another potential catalyst for Bitcoin is that the stablecoin's market capitalization has jumped to nearly $210 billion, compared to $122 billion a year earlier.

A rise in the value of a stablecoin is usually a positive indicator, confirming how more investors are interested in cryptocurrencies.

Meanwhile, Bitcoin's annual inflation rate has continued to decline, moving to 1.12% from a 2015 high of approximately 12%. This inflation rate decreased due to the halving events and the high mining difficulty rate.

So, while further pullback for Bitcoin is possible, there are signs that a positive MVRV score and its strong fundamentals will help push it higher in the long term.