The market value to realized value (MVRV) ratio is one of the most important indicators for analyzing the Bitcoin market. It measures the ratio between the market cap (the current price of Bitcoin multiplied by the total number of coins in circulation) and the realized cap (the sum of the value of all coins in circulation at the price they were last moved).
While there are many uses for the MVRV ratio depending on which metric they’re analyzed with, it essentially provides insight into whether Bitcoin is undervalued or overvalued at a given time.
A higher MVRV ratio suggests that Bitcoin’s price is potentially overvalued, as it indicates the realized value is higher than the market value, which means investors are holding onto unrealized profits. An increase in unrealized profits leads to increased sell pressure as a significant portion of those investors are bound to capitalize on their gains.
Conversely, a lower MVRV ratio can indicate an undervalued market with minimal sell pres
We współpracy z: https://cryptoslate.com/bitcoins-mvrv-ratio-shows-lths-move-the-market-while-sths-react/
