Vaulted_MVRV

Tech spec

Brief Description: The ratio of Bitcoin's market value to the realized value of vaulted coins.

Vaulted_MVRV is a variant of the Market Value to Realized Value (MVRV) Ratio specific to Bitcoin on-chain analysis.
It focuses on the valuation of previously dormant coins that re-enter circulation. Vaulted MVRV measures the relationship between the market value and the realized value of these dormant or 'vaulted' coins. It tends to peak above a value of 1.0 during late-stage periods of market euphoria, which is typically associated with a significant release of stored cointime and an increased probability of oversupply.

It is based on the Cointime Economic framework.

Interpretation An increase in Vaulted_MVRV, particularly values peaking above 1.0, can indicate periods of market highs where dormant coins are activated, potentially signaling a market top. In contrast, lower values may suggest that these dormant coins remain inactive, potentially indicating bearish market conditions or periods of accumulation. This metric is crucial for understanding the impact of long-term holders and dormant coins on Bitcoin's market dynamics

Advanced Explanation Vaulted MVRV is calculated similarly to the traditional MVRV, but it specifically considers the value of coins that have been inactive or dormant for extended periods. These are coins that are not actively traded but are held in storage or potentially lost. The metric evaluates the market dynamics as these vaulted coins are mobilized and become active in the market.

Vaulted_MVRV = Market Price / Vaulted 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/