# MVRV-Z Score

## 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 [market cap](https://docs.glassnode.com/guides-and-tutorials/metric-guides/market-capitalization) and [realized cap](https://docs.glassnode.com/guides-and-tutorials/metric-guides/realized-capitalization).

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).

<figure><img src="https://2190898932-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-Ldi5WtVBeQ2iFbdqJ1a%2Fuploads%2Fgit-blob-1ad72b9eb85fe5497be66f552719539e0b901cb2%2F1.png?alt=media" alt="Bitcoin: MVRV-Z Score"><figcaption></figcaption></figure>

* [View MVRV-Z Score in Glassnode Studio](https://studio.glassnode.com/metrics?a=BTC\&m=market.MvrvZScore)
* [View MVRV-Z Score in Glassnode API Docs](https://docs.glassnode.com/basic-api/endpoints/market#mvrv-z-score)

## 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.

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

## About

### Created By

[Awe\_andWonder](https://medium.com/@Awe_andWonder)

### Date Created

October 2018

## Further Resources

Awe & Wonder - [Introducing … The Bitcoin “MVRV Z” Metric That Predicts Market Tops with 90%+ Accuracy](https://medium.com/@Awe_andWonder/introducing-the-bitcoin-mvrv-z-score-metric-that-predicts-market-tops-with-90-accuracy-89d90df043d7)