Here’s a look at the Market Value to Realized Value Z-Score.
(2010-2023)
This metric simply compares the market value to the realized value.
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Market Value: current price of Bitcoin multiplied by the circulating supply.
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Realized Value: similar to market value, but uses the price at which each coin last moved.
A market top (red zone) is categorized by market value being significantly higher than the realized value.
A market bottom (green zone) is categorized by market value being significantly lower than the realized value.
Taking a look at the chart above, notice how the MVRV ratio has only just bounced off of the green zone?
Using this metric, we can see that the best time to purchase Bitcoin is when it's in the this zone.
Bitcoin still has a loooonnnngggg way to go before it’s anywhere near the red zone.
We’re only just getting warmed up for whats to come.
Interestingly, this metric has consistently picked the cycle tops to within two weeks.
So it’s definitely one I’ll be checking in on.
Bitcoin will be eating for a long time.