Bitcoin On-Chain
MVRV Ratio: Bitcoin's Market Value to Realized Value
Last updated 2026-07-23
The MVRV ratio divides Bitcoin's market capitalization by its realized capitalization — the value of all coins priced at the time they last moved on-chain. It compares today's price to the network's aggregate cost basis: high MVRV readings mark historically overheated markets, while readings below 1 mean the market trades below its average acquisition price.
Why it matters to investors
Because every coin's last on-chain movement is recorded, Bitcoin allows something no traditional asset does: measuring the aggregate cost basis of all holders. MVRV turns that into a single valuation gauge of unrealized profit across the network.
Extremes in the ratio have historically aligned with cycle turning points — elevated readings (historically in the 3.5–4 region) near cycle tops, and readings below 1 during bear-market capitulation, when the average holder is underwater.
How to read it
- MVRV well above its historical mean signals a market rich in unrealized profit — historically fertile ground for distribution and tops.
- MVRV below 1 means the market trades under its aggregate cost basis — historically an accumulation zone, though it can persist during deep bears.
- Use it zone-by-zone rather than as a precise trigger, and note that each cycle's extremes have tended to be shallower than the last as the market matures.
Data sources: CoinMetrics · Bitcoin blockchain (on-chain data)
Finlooker members track this on the live on-chain valuation charts, updated daily from the named sources.
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Common questions
What is realized capitalization?
Realized cap values each Bitcoin at the price of its last on-chain movement instead of the current price, then sums the result. It approximates the total cost basis of all holders, filtering out coins that were bought (or mined) at prices far from today's market.
Is a high MVRV a sell signal?
Not mechanically. High MVRV means large unrealized profits exist, which historically raised the odds of distribution — but the level that marked past tops has varied by cycle. It is best read as a risk gauge alongside other indicators, not a standalone trigger.