Here’s what the data of this historical on-chain indicator suggests regarding whether Bitcoin has become overvalued after its latest uptrend. Bitcoin MVRV Z-Score Hasn’t Climbed Too High Yet As the Reflexivity Research co-founder pointed out in a post on X, the BTC MVRV Z-Score readings have heated up little compared to the values observed in past bull runs. The “Market Value to Realized Value (MVRV) ratio” is an indicator that measures the ratio between the Bitcoin market cap and the realized cap. The “realized cap” refers to a capitalization model for the cryptocurrency that assumes the “true” value of any coin in circulation is the price at which it was last transacted on the blockchain. Related Reading: Tether (USDT) Cap Approaches $90 Billion: Why This Affects Bitcoin Since the last transaction price of any coin was likely the price at which it changed hands, one way to interpret the realized cap is that it represents the total capital the holders have invested into the asset. Since the MVRV ratio compares the market cap (the spot price) agai ..
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