MVRV in Bitcoin analysis: what the metric measures
MVRV compares Bitcoin's market value with the value at which coins last moved. It divides market cap by realized cap to flag profit or loss.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20262 min readFact-checked
MVRV is an on-chain valuation measure. It uses the Bitcoin blockchain's record of when coins moved. Analysts watch it to gauge market sentiment.
How is MVRV calculated?
MVRV compares Bitcoin's market value with the value at which coins last moved. It is a ratio built from two caps. The table below shows how each cap is built.
How do you read MVRV?
MVRV is read against 1. That number is the break-even line. Readings on either side point to different market states.
- Above 1: market cap is higher than realized cap, so the average coin is in profit.
- Below 1: the average coin is at a loss.
- Near 1: the average coin is close to break-even.
- Further from 1: the average profit or loss is more extreme.
What MVRV does not tell you
MVRV shows market sentiment extremes, not a buy or sell signal. It only uses on-chain data, so it misses exchange and derivatives activity. Realized cap is not the same as market cap.
Frequently asked questions
There is no fixed good reading. Traders watch how far the ratio moves from the break-even line. Extremes can last a long time.
MVRV can be calculated for any crypto asset with enough on-chain transaction data. It is most associated with Bitcoin. For assets with low on-chain activity, it is less reliable.
You can find MVRV charts on on-chain data platforms that track Bitcoin. Some market data sites also publish it. Check how the chart defines realized cap.
MVRV updates as new blocks are added and as Bitcoin's price changes. Many charts update in near real time or once per day.
