This metric helps track market sentiment by showing the extent to which Bitcoin holders are in profit versus at a loss. It is the inverse of the "Percent Addresses in Loss" chart.

STH-MVRV is useful for identifying when the market value of Bitcoin is significantly higher or lower than the average cost basis of short-term investors. This ratio can indicate periods where Bitcoin is overvalued or undervalued according to short-term market participants, which often coincides with market highs and lows.