Bitcoin MVRV Z-Score

The MVRV Z-Score is an important on-chain metric used to determine whether Bitcoin is overvalued or undervalued relative to its historical averages. This metric calculates the difference between Bitcoin’s “market value” and its “realized market value,” and then normalizes this difference using the standard deviation of the market value.

Here, the “realized market value” takes into account the last price at which all Bitcoins on the blockchain moved. In other words, it is based on the last transaction price of each coin, not the current price. Therefore, the realized value is considered more stable compared to speculative market movements.

Generally, when the MVRV Z-Score rises above 7, Bitcoin is considered overvalued, and historically, the risk of a correction increases. Conversely, when this metric falls below 0, Bitcoin is considered undervalued, indicating a stronger likelihood of a potential rebound. For this reason, the MVRV Z-Score serves as a critical signal for both whales and long-term investors to understand market saturation points.

The MVRV Z-Score chart on this page can be analyzed alongside Bitcoin’s current market value. Users can track the correlation between price movements and the Z-Score to identify overbought or oversold conditions.