Bitcoin Holders See Unrecovered Gains Surge 21.84% in 21 Days

One of the most effective metrics for assessing the true market sentiment from blockchain is MVRV (Market Value to Realized Value). This tool compares the current market price of Bitcoin with the average acquisition cost of all BTC. In other words, it measures how much unrealized profit the average investor has.

Formula: MVRV = Market Cap / Realized Cap

Simply put, it's like dividing the total market value of all BTC by the total amount initially spent (in dollars) to acquire those BTC when they last moved on-chain.

What Does MVRV Indicate for Us Now?

Since April 8, when the MVRV metric hit a low of 1.74, unrealized profits on the Bitcoin blockchain have gradually increased as prices have risen, reaching 2.1199 on April 29. This represents a 21.84% increase in just 21 days - highlighting a clear shift in market sentiment and a significant revaluation of the average positions held by investors.

Note: This is an average across the Bitcoin blockchain, measured collectively, not individually.

→ View Metrics 1 and 2

How to interpret this in the current cycle:

Historically, MVRV values above 3.5 to 4.0 have marked market cycle peaks. Currently, although we remain below that range, the growth rate in MVRV indicates increasing bullish pressure, which - if sustained - could trigger a distribution phase.

Furthermore, the continuously rising MVRV suggests that more holders are in profit, which could lead to partial sales or profit-taking, especially around major technical resistance levels.

Conclusion ✅

Data shows that the market is recovering quickly, and investor confidence remains strongly placed in Bitcoin, with hopes for continued upward movement that could further enhance profits in the short term.