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Bitcoin MVRV

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Price update 51 minutes ago
UTXO update 51 minute(s) ago

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MVRV Explained

MVRV (Market Value to Realized Value) is the Bitcoin price divided by the realized price.

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It was created by Murad Mahmudov & David Puell following the invention of Realized Cap by Coinmetrics team members Nic Carter and Antoine Le Calvez.

Comparison vs Normal Market Cap

While market cap uses the last traded price multiplied by circulating supply, realized cap sums the market value of all coins at the time they last moved on the blockchain. MVRV is the ratio comparing these two metrics.

Calculation Methods

MVRV can be calculated in two equivalent ways:
1) Dividing the Bitcoin price by the realized price
2) Dividing the market cap by the realized market cap
Both calculations will yield the same result since the supply cancels out in the ratio.

MVRV vs MVRV-Z

While MVRV is a simple ratio of market value to realized value, MVRV-Z score adds statistical analysis by measuring how many standard deviations the current MVRV is from its historical mean. This standardization makes MVRV-Z more useful for comparing across different time periods and market cycles.

Why It's Useful

MVRV helps identify when Bitcoin's exchange traded price is above or below "fair value". It's particularly useful for spotting potential market tops when overvalued and market bottoms when undervalued relative to the realized price.

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