Similar to the MVRV Z-Score, the 2Y version compares Bitcoin’s market value to its realized value, but it uses a 2-year rolling window to capture more relevant market trends. The Z-score (orange line) indicates overbought or oversold conditions based on the difference between these values. This adaptation helps highlight more recent market cycles while reducing the impact of long-term trends.

This chart provides insights into the behavior of short-term Bitcoin investors, who are more sensitive to price fluctuations and may sell during periods of market volatility. When the market price is above the STH Realized Price, it often indicates short-term holders are in profit, while when the market price is below the STH Realized Price, they are likely holding losses.