According to the Bitcoin Market Value to Realized Value (MVRV) Ratio's historical tendency, the bull run may be over.
Bitcoin's MVRV Ratio May Indicate Cycle Stage CryptoQuant founder and CEO Ki Young Ju posted a Bitcoin MVRV Ratio graphic on X. A common on-chain statistic, the MVRV Ratio, compares BTC investors' market cap to their original investment.
The ratio indicates that investors as a whole are profitable when it exceeds 1. However, it is below the threshold, indicating market loss supremacy.
Young Ju submitted a modified MVRV Ratio named the “True MVRV.” This version only considers coins that were traded in the last seven years.
Coins older than seven years may be lost permanently owing to forgetfulness or lost pocket keys. Thus, the True MVRV, which removes coins likely to never return to circulation, might provide a more accurate picture of the sector than the usual measure.
This chart displays this Bitcoin indicator's trend over time:
This bull run has driven the Bitcoin True MVRV to high heights, as seen in the graph above. This suggests the typical investor makes good money.
Higher holder gains have historically led to widespread selloffs for profit. Thus, BTC may peak when the MVRV Ratio increases.
The chart shows that preceding cycles' peaks occurred when the indicator crossed a line. In the latest period, the measure hasn't approached this level.
The CryptoQuant creator says $7 billion in financial inflows into the Bitcoin market each week keep the market cap from overheating.
The True MVRV being high but not too high might indicate that BTC has space to go in the current bull run if the current cycle is anything like the prior ones.