Market-Value-to-Realized-Value (MVRV) Bands

October 12th, 2021

Realized Value

On September 23, 2018, on the Baltic Honeybadger convention in Riga, Latvia, Nic Carter introduced the idea of realized value (initially “realized cap,” however each phrases are since then used interchangeably) that he had developed in collaboration with Antoine Le Calvez. By leveraging the Bitcoin timechain, which holds a public document of all Bitcoin transactions that have been ever made, realized worth seems to be to quantify the entire United States greenback (USD) worth of all bitcoin that existed on the final time these cash have been moved on-chain. Figure 1 shows this realized worth (blue) alongside the entire bitcoin market worth (black), which is the entire market worth of all bitcoin that exist at any time limit.

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