MVRV Ratio
By Menno — 13 years in crypto, 3 bear markets survived, zero paid promotions
Last updated: March 2026
The MVRV (Market Value to Realized Value) Ratio compares Bitcoin's total market cap to its realized cap, indicating whether holders are broadly in profit or at a loss and identifying market cycle tops and bottoms.
The MVRV Ratio is one of the most powerful on-chain valuation metrics for Bitcoin. It divides the market capitalization (current price × total supply) by the realized capitalization (the average price at which all coins last moved × total supply). When MVRV is above 1.0, the average holder is in profit; below 1.0 means the average holder bought higher than the current price.
Historically, MVRV has been a remarkably reliable cycle indicator. Values above 3.5-4.0 have corresponded to major market tops: Bitcoin peaked at MVRV ~4.0 in December 2017 and ~3.7 in November 2021. Values below 1.0 have corresponded to bear market bottoms: Bitcoin reached MVRV of ~0.85 in December 2018 and ~0.72 in November 2022. These extremes represent the maximum pain points where the market has historically reversed.
The MVRV Z-score (a statistical normalization of the raw ratio) is often used as an even more precise signal. An MVRV Z-score above 7 has historically marked cycle tops; below 0 has historically marked bottoms. As of 2024, this metric is tracked by platforms like Glassnode, CryptoQuant, and Look Into Bitcoin. For macro investors, MVRV provides a data-backed framework for the fundamental question — is Bitcoin currently overvalued or undervalued relative to its own history? It's a key component in the Alpha Factory on-chain analysis toolkit.
Frequently Asked Questions
What MVRV Ratio indicates Bitcoin is near a cycle bottom?
MVRV below 1.0 means the average holder is at a loss — historically a strong accumulation signal. Bitcoin reached 0.85 in December 2018 and 0.72 in November 2022, both near cycle bottoms. The MVRV Z-score dropping below 0 provides a more statistically normalized version of this signal.
Can MVRV be used for altcoins?
MVRV exists for Ethereum and several large-cap altcoins via providers like Glassnode. However, altcoin MVRV is less reliable than Bitcoin's because altcoin data history is shorter and their realized value is more affected by large wallet movements. Bitcoin's MVRV remains the most battle-tested version of this metric.
Related Tools on Alpha Factory
Related Terms
Realized Price
Realized price is the average price at which all Bitcoin in circulation was last moved on-chain, representing the aggregate cost basis of all holders and a key on-chain support level.
On-Chain Analysis
On-chain analysis is the study of blockchain transaction data to understand investor behavior, identify market trends, and gain trading insights. It includes metrics like exchange flows, whale movements, and holder distribution.
Market Cycle
The crypto market cycle is the recurring pattern of accumulation, uptrend, distribution, and downtrend that crypto markets follow — typically tied to Bitcoin's 4-year halving schedule.
SOPR (Spent Output Profit Ratio)
SOPR measures whether coins moved on-chain are being sold at a profit or a loss by dividing the current price of moved coins by the price at which they were originally acquired.
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