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.

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.