When Bitcoin’s Market Price is above the Realized Price, market participants are in profit. When the Market Price is below the Realized Price, participants are in paper loss. This provides a long-term view of Bitcoin’s market sentiment, offering a key indicator of potential market bottoms when the price falls below the Realized Price.

The MVRV Z-Score compares the current market value of Bitcoin (black line) to its realized value. The Z-score (orange line) measures the standard deviation between these two values, highlighting extreme overvaluation or undervaluation.