z-score

According to Cointelegraph, Jan3 CEO Samson Mow stated that Bitcoin is currently undervalued compared to gold and the global money supply, which may indicate a price reversal.Mow posted on the X platform that Bitcoin's market value relative to gold or the global money supply is below its trend line by 24% to 66%, while gold is in an overbought state. Mow also cited the Bitcoin Z-score metric, which tracks the deviation of BTC price from its historical average. The Z-score of the Bitcoin-to-gold ratio is currently around -1.24. When this ratio's Z-score falls below -2, Bitcoin has previously experienced "significant" price increases.TradingView data shows that during the FTX collapse in November 2022, this metric fell below -3, and subsequently, BTC price rose over 150% within the next 12 months. A similar pattern occurred in March 2020 during the COVID-19 pandemic, where the metric fell below -2, and Bitcoin surged over 300% in the following 12 months.

Cryptocurrency researcher anıl posted on the X platform that, based on historical data, when the MVRV Z-Score drops below 0, especially below -0.20, Bitcoin is at its price low point. In this cycle, the lowest value Bitcoin reached was +0.26, which means the classic "green zone" has not yet been tested. In every previous major cycle, the Z-Score has entered negative territory. If this value enters negative territory again, it could signal the most attractive medium to long-term risk-reward ratio range for Bitcoin.

ChainCatcher news, according to CryptoSlate, Glassnode data shows that Bitcoin's MVRV Z-Score indicates it is closer to being undervalued, reflecting potential buying opportunities. Over the past year, this metric has experienced significant fluctuations, reflecting the price trends of Bitcoin's volatility.Note: The MVRV Z-Score assesses whether Bitcoin is overvalued or undervalued relative to its "fair value."The Z-Score index peaked at around 3 points in March of this year, coinciding with Bitcoin rising above $70,000. Since then, the Z-Score index has significantly declined. This drop indicates that the market is moving away from potential overvaluation and approaching levels historically associated with undervaluation.As the Z-Score trends towards the lower end, it suggests that Bitcoin may be nearing a period of being undervalued relative to its realized value. Historically, Z-Score values around 0 indicate market bottoms, suggesting that Bitcoin's current position may provide a favorable entry point for long-term investors.

ChainCatcher message, Zeta Markets announced on social media that the Genesis Epoch trading rewards are now open for claims, with 11,771 traders on the leaderboard set to receive their corresponding shares of 8 million ZEX rewards based on Z-Score.In addition, Epoch 1 has recently started, offering an initial 2 million ZEX rewards. Users can participate in trading and increase their reward shares before August 22.

ChainCatcher news, based on Solana, the DeFi derivatives protocol Zeta Markets announced that it will end the Z-Score Season 1 event early next week, and Season 2 will start on January 10.

According to ChainCatcher, as monitored by Glassnode, the Bitcoin MVRV Z-Score (standard score) has risen to 0.239, reaching a 7-month high.ChainCatcher Note: The MVRV-Z Score is a relative metric, MVRV-Z Score = (Market Cap - Realized Cap) / Standard Deviation (Market Cap), where "Realized Cap" is based on the value of Bitcoin transactions on the chain, calculated by summing the "last moved value" of all Bitcoins on the chain. When this metric is too high, it indicates that Bitcoin's market cap is overvalued relative to its actual value; conversely, it indicates undervaluation. (Source link)