What is MVRV Ratio? The Market Value to Realized Value (MVRV) ratio is a metric used to measure the value of Bitcoin by comparing its current market value to the total value of its on-chain transactions. It is calculated by dividing the current market value of Bitcoin by the realized value, which is the total cost at which all existing Bitcoin was acquired. This ratio helps in understanding whether the current market price is overvalued or undervalued compared to the cost at which Bitcoin was acquired. Negative MVRV Ratio: What Does it Mean? A negative MVRV ratio indicates that the current market price of Bitcoin is lower than the total cost at which all existing Bitcoin was acquired. In other words, it suggests that investors are currently holding Bitcoin at a loss. This can be seen as a bearish signal as it may indicate a lack of confidence in the market. Impact on Bitcoin's Price The negative MVRV ratio has sparked debates among analysts about the future direction o...
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