MVRV
What it measures
Market Value to Realized Value - BTC's current market cap divided by its realized cap (every coin valued at the price it last moved on-chain, a rough aggregate cost basis).
Formula
MVRV = Market Cap / Realized Cap
Normal range
Roughly 1.0-2.0 in typical mid-cycle conditions. Below 1.0 means the average holder is underwater; above 3.5 has historically marked the late, euphoric stage of a cycle.
How it fails
MVRV says nothing about WHEN a threshold gets crossed or resolved - a reading above 3.5 can persist or even climb further before any reversal. It's also insensitive to short holding periods (a coin that moved yesterday counts the same as one dormant since 2013), so it reflects longer-term positioning more than immediate flow.
Related metrics
Puell Multiple, Net Exchange Flow, Active Addresses, Realized Cap
Bull read
A low or falling MVRV means most holders are near or below cost basis - historically a higher-conviction, lower-supply-overhang environment.
Bear read
A high MVRV alone doesn't cap upside - cycles have pushed well past 3.5 before topping, and calling a top on this metric alone has been wrong before.