MVRV (Market Value to Realized Value) is the ratio of the market capitalization of the coin to its real capitalization.
With the help of this indicator, you can understand whether the price of bitcoin is higher or lower than the “fair value”.
MVRV is calculated by dividing the asset’s real capitalization by its market capitalization.
MVRV = Realized Cap (real one) /Market Cap (market one),
where real capitalization is the price at which bitcoin was bought on average,
and market capitalization is the current value of a bitcoin multiplied by the number of tokens in circulation.
Thus, if a value greater than one was obtained during the calculation of MVRV, it can be judged that the holders are fixing profits, and the market is very overheated.
If MVRV is less than one, the entire market is in the red, the number of holders increases due to the fact that no one fixes the loss.
Even such large funds as microstrategy sit in the middle with an average entry point of 30k.
Now the company has ~130,000 $BTC (~$4 billion) and they do not panic and did not sell a single $BTC on this fire
Did you know about this indicator? And what do you think, is a wave of growth going to begin if MVRV is now at -1 and most of the holders are with losses?