CryptoQuant analyst Darkfost recently emphasized that the MVRV metric for short-term holders of Bitcoin (BTC) indicates potential for sustained growth. Historically, the unrealized profits of short-term holders (STH) have never exceeded the 42% level, as indicated by the MVRV ratio. Typically, when the STH MVRV approaches 1.35 (equivalent to approximately 35% unrealized profits), it triggers profit-taking, often leading to a brief market pullback. Currently, the STH MVRV is close to 1.15, signaling further appreciation potential.
It is noteworthy that the realized price for short-term holders broke the $100,000 level on July 11, reaching an all-time high of $102,000. This milestone reinforces the view that BTC could still experience a price increase of 20% to 25% before encountering significant MVRV threshold resistance. The analysis points out that a bullish phase may occur in the future before any large-scale profit-taking activity takes place.
MVRV (Market Value to Realized Value ratio) remains an important tool for assessing the dynamics of cryptocurrency markets like Bitcoin. By comparing market value to realized value, this ratio provides insights into investors' unrealized gains or losses, helping to identify periods of market overheating or undervaluation, particularly for short-term holders.
