MVRV-Z Score

The MVRV-Z Score compares market value and realized value to assess when an asset is overvalued or undervalued.

Indicator Overview

The MVRV-Z Score is used to assess when an asset is overvalued or undervalued relative to its "fair value", as underlined by the deviation between its and .

When market value is significantly higher than realized value, it has historically indicated a market top (red zone), while the opposite has indicated market bottoms (green zone).

How is it measured?

MVRV-Z Score is defined as the ratio between the difference of market cap and realized cap, and the standard deviation of market cap.

About

Created By

Date Created

October 2018

Further Resources

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Last updated 4 months ago

Indicator Overview

The MVRV-Z Score is used to assess when an asset is overvalued or undervalued relative to its "fair value", as underlined by the deviation between its and .

When market value is significantly higher than realized value, it has historically indicated a market top (red zone), while the opposite has indicated market bottoms (green zone).

How is it measured?

MVRV-Z Score is defined as the ratio between the difference of market cap and realized cap, and the standard deviation of market cap.

\begin{align*} \textrm{MVRV-Z Score} &= \frac{\textrm{Market Cap - Realized Cap}}{\textrm{Standard Deviation}~{\color{gray}{\textrm{(Market Cap)}}}} \end{align*}