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MVRV Z-Score uses blockchain analysis to identify periods where Bitcoin is extremely over or undervalued relative to its 'fair value'.

MVRV Z-Score Chart Explained

The MVRV Z-Score, developed by Murad Mahmudov and David Puell, is a Bitcoin market analysis tool that evaluates Bitcoin's market value against its realized value. The market value is calculated by multiplying Bitcoin's current price by the number of coins mined, while the realized value considers the price at the time each Bitcoin last moved, accounting for lost or hodled coins.

The MVRV ratio is obtained by dividing the market value by the realized value. This ratio identifies overvaluation when above 3.7 and undervaluation below 1, offering insights into market psychology and investor behavior.

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Any information found on this page is not to be considered as financial advice. You should do your own research before making any decisions.

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