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Pricing Models

MVRV Ratio

What Is MVRV Ratio?

Market Value to Realised Value — the ratio between Bitcoin's market cap and its realised cap. Measures whether Bitcoin is overvalued or undervalued relative to the aggregate cost basis of all holders.

How to Interpret

MVRV > 3.0 historically signals overheated, euphoric conditions and potential cycle tops. MVRV < 1.0 indicates the market is trading below aggregate cost basis — historically the best accumulation zones.

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More Pricing Models Metrics

AVIV Ratio

Active Value to Investor Value — a refined version of MVRV that adjusts for active supply and investor behavior. Provides a cleaner signal of market valuation by filtering out dormant and lost coins.

Euphoria Zone

A composite indicator combining multiple pricing models to identify when Bitcoin has entered an unsustainably euphoric phase. Triggers when multiple independent models simultaneously signal overvaluation.

Power Law

A mathematical model that plots Bitcoin's price on a logarithmic scale over time, creating a corridor of expected prices. Based on the observation that Bitcoin's price follows a power law relationship with time.

NUPL

Net Unrealised Profit/Loss — measures the total profit or loss of all Bitcoin holders as a proportion of market cap. Calculated as (Market Cap - Realised Cap) / Market Cap.

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