200 Week Moving Average Heatmap
$38,768.41 +0.07%
Monthly Returns Heatmap
-8.13%
MVRV Z Score
1.6
Pi Cycle Top Indicator
$63,094
Bitcoin Dominance
55.8% -0.47%
Fear and Greed Index
29 +26.09%
Mayer Multiple
0.85 +1.19%
US vs Offshore Trading Volume
4.73%
Circulating Supply
19,751,121.875 +0.00%
Halving Countdown
9.7%
Hashrate vs Price
711.63 EH/s +10.19%
Node Map
19,203
Difficulty Estimator
79,679,234,551,296 +0.00%
Miner Revenue
$27,441,269.88 +10.43%
Network Difficulty
89.47T +0.00%
Puell Multiple
0.69 +10.39%
Exchange Trading Volume
$20.54B -58.71%
Exchange Trading Volume BTC
$6.36B -66.80%
Exchange Volume BTC Dominance
31.2% -19.59%
Monthly Exchange Volume
$231.21B
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MVRV Z Score Chat
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MVRV Z Score stats
6 days
Terminal Stats
21
1
The MVRV Z-Score combines three key components to assess the valuation of bitcoin:
The formula for calculating the MVRV Z-Score is as follows:
MVRV Z-Score = ( Bitcoin market value - Bitcoin realized value ) / market value standard deviation
When the market cap exceeds the realized cap, indicating a higher speculative premium, the MVRV Z-Score tends to increase. Conversely, when the market cap is lower than the realized cap, the score may dip into negative territory, suggesting potential undervaluation.
The MVRV Z-Score is crucial because it provides insights into market sentiment and valuation extremes. Historically, low MVRV Z-Scores (often in the green zone on the chart) have signaled periods where bitcoin was potentially undervalued relative to its realized value. These periods have historically presented strategic buying opportunities for investors looking to accumulate bitcoin at lower prices before subsequent price rallies.
Conversely, high MVRV Z-Scores (in the red zone on the chart) suggest that the market cap significantly exceeds the realized cap, indicating a potentially overvalued market. This could signal a time for investors to consider locking in profits or reducing exposure to mitigate downside risk.
Bitcoin investors can use the MVRV Z-Score as a tool for decision-making:
Buying Opportunities: During periods of low MVRV Z-Scores, strategic investors may consider accumulating bitcoin, anticipating potential future price increases.
Profit-Taking: Conversely, when the MVRV Z-Score is high, it may be prudent to consider profit-taking strategies or reducing exposure to mitigate risks associated with market corrections.
The MVRV Z-Score offers a nuanced perspective on bitcoin market dynamics, balancing the current market cap with the realized cap to gauge market valuation. By understanding this metric and its implications, investors can make informed decisions about buying, holding, or selling bitcoin.
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