Data from blockchain analytics firm IntoTheBlock shows that the market-to-realized value ratio (MVRV), used to measure Bitcoin’s (BTC) market valuation, currently stands at 1.76. Juan Pellicer, senior researcher at IntoTheBlock, said the ratio shows that Bitcoin has not yet reached the point of being overvalued, similar to other cryptocurrencies.

Bitcoin Market Cap to Realized Value Ratio (MVRV, Source: IntoTheBlock, Image Source: BeInCrypto)

An increase in the MVRV value indicates that Bitcoin holders have a good level of unrealized gains, which means that the possibility of selling is higher. When the value decreases, it means that the holder's profits decrease and the possibility of selling decreases. Historically, the MVRV value can also show when Bitcoin is undervalued or overvalued, and whether it is close to the peak of the cycle.

Based on where MVRV currently stands, Pellicer explained in an interview with BeInCrypto:

“Most assets are not yet close to their historically overvalued range. For example, Bitcoin’s highest MVRV peak this year was around 2.64, while in the previous cycle it was as high as 3.68. For many altcoins, the gap Even bigger."

Bitcoin Price vs. MVRV (Source: TradingView)

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