MVRV Ratio
Ratio of market capitalization to realized capitalization. A classic indicator of Bitcoin cycle overheating and bottoms.
What the metric shows
MVRV compares the current market value of all coins with the network's 'cost basis' — the sum of prices at which the coins last moved. In simple terms: it shows how many times more the market values Bitcoin compared to what the average holder paid for it.
Values above 3.7 have historically coincided with BTC cycle tops, and below 1 with capitulation zones, when the average market participant is at a loss. The metric is slow: it does not provide entry points, it shows the cycle phase.
How it is calculated
How to read the signal
| Zone | Value | Interpretation |
|---|---|---|
| MVRV > 3.7 | Historical top zone — the market is severely overheated | |
| 2.4 – 3.7 | Late phase of the bull cycle, most participants have high profits | |
| 1.0 – 2.4 | Neutral zone, healthy trend | |
| MVRV < 1.0 | Price is below the network's cost basis — accumulation zone |
Frequently Asked Questions
How does MVRV differ from the Mayer Multiple?
Mayer compares the price with a moving average — it is pure technical analysis. MVRV relies on on-chain data: the real cost basis of coins in the network.
Does MVRV work for altcoins?
Partially. For ETH it is calculated the same way, but for coins with a short history, the overheating zones are shifted and less reliable.