🟠 New Bitbo Chart

Bitbo is excited to announce our newest chart:

MVRV Explained

MVRV (Market Value to Realized Value) is the Bitcoin price divided by the realized price.

Comparison vs Normal Market Cap

While market cap uses the last traded price multiplied by circulating supply, realized cap sums the market value of all coins at the time they last moved on the blockchain. MVRV is the ratio comparing these two metrics.

Calculation Methods

MVRV can be calculated in two equivalent ways:
1) Dividing the Bitcoin price by the realized price
2) Dividing the market cap by the realized market cap
Both calculations will yield the same result since the supply cancels out in the ratio.

Why It's Useful

MVRV helps identify when Bitcoin's exchange traded price is above or below "fair value". It's particularly useful for spotting potential market tops when overvalued and market bottoms when undervalued relative to the realized price.

Model By

It was created by Murad Mahmudov & David Puell following the invention of Realized Cap by Coinmetrics team members Nic Carter and Antoine Le Calvez.

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