Understanding MVRV Z-Score
Learn how the Market Value to Realized Value ratio helps identify overvalued and undervalued conditions in Bitcoin and crypto markets.
Weight: 15%
What is MVRV Z-Score?
The MVRV Z-Score compares a cryptocurrency's market capitalization to its realized capitalization. It identifies periods when the asset is significantly over or undervalued relative to its fair value.
How Does It Work?
When the Z-Score is high (typically above 7), the market is overheated — historically a good time to sell. When low (below 0.1), the asset is undervalued — historically a good time to accumulate.
How We Use It
MVRV Z-Score is the highest-weighted component (15%) in our Value Score algorithm. It provides the strongest signal for long-term value assessment.
Z > 7
Overheated / Sell Signal
Z < 0.1
Undervalued / Buy Signal