According to BlockBeats, on July 27, Crypto Quant analyst Axel Adler Jr wrote that Bitcoin's current valuation metric, MVRV Z-Score, has fallen to a multi-year low but has not yet fallen into negative territory, indicating that the market is undervalued rather than in a typical cyclical bottoming-out phase of full capitulation.
Data shows that the BTC MVRV Z-Score is currently around 0.42, far below the historical average of 1.7, and has remained near zero for 30 consecutive days. Since the end of 2025, this indicator has been declining, reaching a low of approximately 0.185 on June 30th, but has not yet entered the negative territory representing a large-scale sell-off. Meanwhile, the BTC 7-day Realized Profit/Loss (P/L) indicator has turned positive, currently at approximately +239 million USD. In the previous month, this indicator was mostly negative, with losses reaching as high as 8.5 billion USD in June and approximately 3 billion USD in a single week in mid-July.
Realized profit and loss recovery indicates that market selling pressure is easing, but the MVRV Z-Score has not yet shown signs of capitulation (a sell-off that breaks below zero). Therefore, it is currently closer to a "low-valuation + stabilization" phase than a confirmation of a cyclical bottom. If the MVRV Z-Score subsequently recovers to its historical average of 1.7, while realized profit and loss remain positive, it could signal a strengthening market. Conversely, if it falls below the June low of 0.185 and enters negative territory, it could signify a new round of pressure release.