Data from blockchain analysis company IntoTheBlock indicates that the market value to realized value ratio (MVRV) for Bitcoin (BTC) currently stands at 1.76. Senior researcher Juan Pellicer stated that this ratio suggests Bitcoin has not yet reached a level of overvaluation, similar to other cryptocurrencies.
The MVRV ratio indicates that Bitcoin holders currently enjoy a favorable level of unrealized gains, implying a higher likelihood of selling. Conversely, when the ratio declines, it signifies reduced profits for holders, thereby decreasing the likelihood of sell-offs. Historically, the MVRV ratio has also been useful in identifying moments when Bitcoin is undervalued or overvalued, as well as determining proximity to the peak of its cycles.
Based on the current position of the MVRV, Pellicer explained in an interview with BeInCrypto:
Bitcoin price compared to MVRV (source: TradingView)
Data source