Bitcoin price has had a strong performance this year as it jumped by 120%, beating popular assets like the Nasdaq 100 and the S&P 500 indices. 
Bitcoin (BTC) has retreated to $97,000 from the all-time high of $108,427 after the Federal Reserve pointed to just two interest rate cuts in 2025.
MVRV score shows Bitcoin price is still cheap
The recent Bitcoin pullback affected investors, as evidenced by spot ETF flows.
According to SoSoValue, these funds had net outflows of $276 million on Friday, a day after they shed $680 million in assets. That was a sign that some investors believe that Bitcoin may have topped.
Still, the Market Value to Realized Value indicator hints that Bitcoin price is still cheap even after moving to a record high last week.
According to CoinGlass, the MVRV-Z score has dropped to 2.84 from last week’s high of 3.3. Historically, an MVRV-Z score figure below 3.7 is a sign that an asset is undervalued. 

Bitcoin MVRV indicator | Source: Coinglass
The MVRV-Z score is an important indicator that looks at the market value and the relative value of a coin. It is calculated by subtracting the realized market capitalization from the circulation market value and then dividing the figure by the standard deviation. 
Bitcoin had an MVRV score of 3.03 in the last big correction in March this year, and 7 in the previous major correction in January 2021. 
Therefore, this score is a sign that the coin could recover strongly in the next few weeks. As we wrote in a recent BTC forecast, the cup and handle pattern points to a rally to $122,000 in this bullish cycle.

BTC faces other strong fundamentals
The coin also has some strong fundamentals. As shown below, the number of Bitcoins in circulation has dropped to a multi-year low of 2.24 million. There were over 2.72 million coins in exchanges in September this year. 
That indicates that more investors are buying and storing Bitcoins in self-custody wallets. Some of these investors are those accumulating ETFs, which now have over $109 billion in assets. Companies like Marathon Digital and MicroStrategy have also continued to accumulate Bitcoins this year.
MicroStrategy now holds over 439,000 coins.

Bitcoin balances on exchanges | Source: CoinGlass
The other potential catalyst for Bitcoin is that the stablecoin market cap has jumped to almost $210 billion, up from $122 billion a year earlier.
A rise in stablecoin value is usually a positive indication, underscoring how more investors are showing interest in cryptocurrencies.
Meanwhile, Bitcoin’s annual inflation rate has continued falling, moving to 1.12% from the 2015 high of almost 12%. This inflation rate has fallen because of the halving events and the rising mining difficulty rate. 

Bitcoin annual inflation rate | Source: IntoTheBlock
Therefore, while more Bitcoin pullback is possible, there are signs that its favorable MVRV score and strong fundamentals will help to push it higher in the longer term.

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