MVRV Ratio
What it shows
MVRV (Z-Score) compares market value with realized value (the network's average acquisition price). It shows whether holders are collectively deep in profit or in loss.
How to read it
MVRV is one of the best historical markers of cycle phases: extremely low readings coincided with bear bottoms, extremely high ones with bull tops. Read it over the long term, not day to day.
Parameters
- MVRV Z-Score
- High = large unrealized profit across the market; low/negative = the market underwater.
- Positive reading: Low or negative: historically an undervaluation and cycle-bottom zone.
- Negative reading: Very high: historically a euphoria and cycle-top zone, when profit tempts taking.
- Neutral reading: Mid values: the market with neither extreme profit nor loss.
Example
MVRV Z-Score near 0 or below: price is near the market's average acquisition cost, historically a bottom and accumulation zone. Values in the red zone (e.g. 7–10) historically accompanied cycle tops; 0–3 is fair value without extremes.