Definition ∞ The MVRV Z-Score Low is an on-chain indicator that signals periods where a cryptocurrency’s market value is significantly below its realized value. A low Z-score suggests that the asset is undervalued relative to the average cost basis of its holders. Historically, such lows have often preceded market recoveries. This indicates potential capitulation.
Context ∞ Cryptocurrency analysts frequently cite the MVRV Z-Score Low in market reports as a potential indicator of a market bottom or an opportune time for long-term accumulation. This metric provides a macro perspective on market cycles, helping investors assess whether an asset is currently trading in a capitulation zone, offering strategic insights.
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