Odaily Planet Daily News: Although Bitcoin may further correct, there are signs that its good MVRV score and strong fundamentals will help drive it higher in the long term. According to CoinGlass data, the Market Value to Realized Value (MVRV) indicator shows that even though BTC reached an all-time high last week, its price remains undervalued. Its MVRV-Z score has dropped from last week's high of 3.3 to 2.84. Historically, an MVRV-Z score below 3.7 indicates that the asset is undervalued. The MVRV-Z score is an important indicator of the market value and relative value of tokens, calculated by subtracting the realized market value from the circulating market value and then dividing that number by the standard deviation. Bitcoin's MVRV score during its last major correction in March this year was 3.03, and during the last major correction in January 2021, it was 7. This suggests that the score indicates BTC may experience a strong recovery in the coming weeks. Additionally, BTC has some strong fundamentals, including the circulating supply of BTC dropping to a multi-year low of 2.24 million coins. In September this year, there were over 2.72 million BTC on exchanges. This indicates that more and more investors are purchasing BTC and storing it in self-custody wallets, with some investors accumulating ETF shares. Another potential catalyst for Bitcoin is that the market capitalization of stablecoins has jumped from $122 billion a year ago to nearly $210 billion. Meanwhile, Bitcoin's annual inflation rate continues to decline, from a high of nearly 12% in 2015 to 1.12%. The decrease in the inflation rate is due to the halving event and mining difficulty adjustments. (crypto.news)

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