What is the MVRV Z-Score?
The MVRV Z-Score, or Market Value to Realized Value Z-Score, is a statistic used to indicate whether the cryptocurrency market is overheated or undervalued. It compares two critical metrics:
Market Value (MV): This is the price of Bitcoin (price of the cryptocurrency asset) multiplied by the circulating supply, effectively its market capitalization. Realized Value (RV): This represents the total value of Bitcoin (total value of cryptocurrency assets) based on the price at which it was last moved. It provides a view of the "real" acquisition cost of the market.
