MVRV (Bitcoin)

Measures Market Value to Realized Value (MVRV) ratio of a digital asset, designed to evaluate its valuation dynamics across various timeframes.

Quantifies Unrealized Profit/Loss Dynamics

MVRV measures the aggregate unrealized profit or loss across Bitcoin holders by comparing the current price to the average cost basis (realized price). This creates a direct feedback loop:

• High values: Signals extreme unrealized profits, historically coinciding with cycle tops as investors take profits
• Low values: Indicates widespread unrealized losses, often marking capitulation phases and accumulation opportunities
• By tracking these extremes, MVRV captures shifts in investor behavior before they manifest in price action

MVRV data is collected by analyzing blockchain transactions to calculate Market Value (current price × circulating supply) and Realized Value (aggregate of all coins' last transacted prices). Realized Value is derived from on-chain data tracking each coin's acquisition price at its last movement, while Market Value uses real-time price data. The ratio is then computed as Market Value divided by Realized Value, providing a valuation metric normalized against historical averages.