Active_MVRV

Tech spec

Brief Description: Ratio of Market Value to Realized Value for active coins.

Active_MVRV highlights unrealized profit or loss in the economically active Bitcoin supply. Active coins is defined by the cointime economics framework.

Interpretation A high Active_MVRV value can indicate that a significant portion of the active Bitcoin supply is held at an unrealized profit, suggesting market optimism. Conversely, lower values may signal that the active supply is held at an unrealized loss, potentially indicating market pessimism or accumulation phases. This metric helps identify trends and potential turning points in market cycles by focusing on the active, economically significant Bitcoin supply.

Advanced Explanation Active_MVRV focuses exclusively on coins actively contributing to the revaluation of the Realized Cap across market cycles. It excludes the inactive supply, making it a more stable and consistent metric for assessing the maximum value near historical cycle peaks.

Active_MVRV = Market Cap / Active Realized Cap

or

Active_MVRV = Market Price / Active Realized Price

Cointime Economics is a new framework for Bitcoin onchain analysis published by James Check and David Puell. References: https://ark-invest.com/white-papers/cointime-economics/ and https://insights.glassnode.com/introducing-cointime-economics/