Bitcoin Market-Value-To-Realized-Value (MVRV) Ratio

We believe that both market concepts and participants are crucial for Bitcoin’s game theory and price action, since the booms seem to expand the network via an exuberant viral gossip mechanism that broadcasts the existence of Bitcoin to the world population; while the busts, in the long-run, seem to reward individuals who chose to delay short-term financial gratification in the search for sound money. This very dichotomy, in our opinion, also explains the relevance and effectiveness of MVRV ratio.