MVRV Ratio
Market cap divided by realized cap — a cycle gauge showing whether holders are, on average, in heavy profit or deep loss.
MVRV (Market Value to Realized Value) divides market cap by realized cap. Above 1, the average coin is in profit; below 1, in loss. It quantifies the entire market’s unrealized profit-and-loss state in a single number.
Historically, very high MVRV (roughly 3.5+ for Bitcoin) has clustered near cycle tops — extreme aggregate profit tempts selling — while readings below 1 have marked capitulation bottoms. Like all cycle indicators, its edge is at extremes and on long horizons, not as a day-trading signal, and its historically reliable thresholds may compress as the market matures. The MVRV Z-score refines it statistically. A staple of on-chain cycle analysis.