Data from blockchain analysis firm IntoTheBlock indicates that the Market Value to Realized Value ratio (MVRV) for Bitcoin (BTC) currently stands at 1.76. Senior researcher Juan Pellicer stated that this ratio suggests Bitcoin has not reached an overvaluation stage, similar to other cryptocurrencies.
The increase in the MVRV value indicates that Bitcoin holders are experiencing a favorable level of unrealized gains, which implies a higher likelihood of selling. Conversely, a decline in this value reflects reduced profits for holders and a lower probability of sell-offs. Historically, MVRV values have also indicated points in time when Bitcoin was undervalued or overvalued, as well as whether it is approaching a cycle peak.
Based on the current position of MVRV, Pellicer explained in an interview with BeInCrypto:
Comparison of Bitcoin price and MVRV (Source: TradingView)
Data source
