What it is
The MVRV ratio is an on-chain metric calculated by dividing Bitcoin's market capitalization by its realized capitalization. Market capitalization is the current price multiplied by the circulating supply, while realized capitalization sums the value of each Bitcoin at the price it was last moved. This ratio helps assess the aggregate profitability of the Bitcoin network and the market's overall sentiment.
An MVRV ratio above 1 indicates that the average Bitcoin holder is in profit, while a ratio below 1 suggests an average unrealized loss. Historically, MVRV values significantly above 3-4 have coincided with market tops, signaling potential overvaluation and profit-taking. Values below 1, or even below 0.8, have historically marked market bottoms, indicating undervaluation and accumulation opportunities.
Why it matters
The MVRV ratio helps retail investors gauge Bitcoin's market sentiment and identify potential periods of overvaluation or undervaluation, aiding investment decisions.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice