A key indicator shared by cryptocurrency analyst Ali Martinez that has accurately timed previous Bitcoin ($BTC) bear market bottoms in the last two bearish cycles is seemingly suggesting that the cryptocurrency is highly undervalued.

According to the crypto analyst, back in 2015 Bitcoin’s MVRV index, which is calculated by dividing Market Value by Realized Value, drooped to -56.85% to “mark the end of the bear market.” In December 2018, after Bitcoin’s price plunged from a high near $20,000 to little over $3,000, it dropped to -55.62%.

The analyst added that BTC’s MVRV index has hit -50.09% this cycle in mid-June and is now sitting at -48.23% even with the cryptocurrency’s price below the $20,000 mark.

The MVRV index, according to Santiment, increases as more people will be “willing to sell as the potential profits increase” and “gives an idea of how much overvalued or undervalued an asset is.” Per the firm, if the MVRV is at 100%, if all holders sell their coins at current prices they lock in a profit of 100%. On the other end, it indicates how undervalued an asset is, on average.

The index dropped below -50% this cycle at a time in which the flagship cryptocurrency posted its worst quarterly performance in more than a decade after losing around 58% of its value in the second quarter of the year.

Bitcoin has posted its worst quarterly performance since 2011, when it lost 68.1% of its value in the third quarter of that year. At the time, the price of the cryptocurrency plunged after in June of 2011 its largest exchange, Mt. Gox, experienced its first hack. At the time, BTC even flash crashed down to $0.01.

The cryptocurrency space’s ongoing bear market has seen the price of BTC  plunge from around $69,000 back in November 2021 to around $19,000 at the time of writing amid risk-off sentiment in the markets driven by inflation fears, interest rate hikes, and the war in Ukraine.

Cryptocurrency prices plunging also revealed several firms in the space were highly leveraged. In May, TerraUSD ($UST), an algorithmic stablecoin in the Terra network, collapsed along with its sister token LUNA, wiping billions from the market.

In June, embattled crypto lending firm Celsius Network froze withdrawals for customers over “extreme market conditions,” with rival lender Babel Finance and crypto exchange CoinFLEX freezing withdrawals shortly after.

Moreover, crypto hedge fund Three Arrows Capital has entered liquidation following a court order issued in the British Virgin Islands after creditors sued the fund for its inability to repay debts.

According to the latest edition of CryptoCompare Research’s “Digital Asset Management Review“, in June, one Bitcoin ETP’s assets under management (AUM) managed to hit an all-time high despite the current crypto bear market.

The 21Shares Short Bitcoin ETP (SBTC), which “seeks to provide a -1x return on the performance of Bitcoin for a single day,” saw a 30-day return of 30.8% according to CryptoCompare, making it the third consecutive month where the product’s assets under management have risen, recording a new $16.5 million all-time high this month.

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