Bitcoin’s price swung between $100,000 and $104,500 in the past 24 hours, reflecting heightened volatility as global markets adopt a risk-off stance. Despite the panic, on-chain data suggests the market is far from collapse.
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The broader crypto market stands at roughly $3.46 trillion, with Bitcoin dominance near 60%, while the Fear & Greed Index has dropped to 20, signaling “Extreme Fear.”
MVRV Ratio Points to Potential Accumulation Zone
Meanwhile, Bitcoin’s MVRV ratio has plunged to 1.8, its lowest reading since April 2025, flashing a classic accumulation signal, according to CryptoQuant.
Every time the MVRV has dipped into the 1.8–2.0 band over the past five years, it has marked either a mid-term bottom or the launchpad for the next leg higher.
The metric compares Bitcoin’s current market value to the average price all investors paid, helping indicate whether BTC is overvalued, undervalued, or near a potential market bottom.
Yesterday’s brutal shakeout liquidated $1.7 billion in positions, with 85 % of the damage hitting over-leveraged longs. Yet on-chain stablecoin data show caution but not panic.
CryptoQuant notes that USDT supply stays elevated at roughly $183 billion, while USDC remains steady around $75 billion, buoyed by institutional payment demand.
At the same time, liquidity is largely on the sidelines, awaiting signals from upcoming U.S. macroeconomic data, including employment figures and trade updates.
Furthermore, even amid fear-driven selling and heightened volatility, realized losses have stayed moderate, indicating measured repositioning instead of full-scale capitulation.
“Overall, on-chain signals point to a market in transition, not collapse,” analysts state.
With ongoing ETF inflows, growing tokenization, and corporate treasury adoption, structural liquidity remains intact. Analysts point to Bitcoin’s $99K–$101K range as a potential support zone for the next phase.
Why This Matters
Bitcoin’s MVRV and on-chain signals suggest the market may be stabilizing and approaching a potential accumulation zone.
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People Also Ask:
A Bitcoin cycle bottom is the phase in the market where prices hit a temporary low after a decline, often signaling the start of a new upward trend.
Analysts look at metrics like the MVRV ratio, realized losses, exchange reserves, and on-chain data to spot accumulation zones where the market may be stabilizing.
The MVRV ratio compares Bitcoin’s market value to the average price investors paid. When it drops to historically low levels, it often signals a potential cycle bottom.
Not necessarily. A cycle bottom suggests potential accumulation, but prices can remain volatile. Investors should consider risk management and broader market trends.
Historically, Bitcoin’s market cycles average roughly 3–4 years, with bottoms often occurring after prolonged bear markets and periods of high fear.
