{"id":651859,"date":"2024-11-07T09:00:08","date_gmt":"2024-11-07T09:00:08","guid":{"rendered":"https:\/\/wncen.com\/?p=651859"},"modified":"2024-11-06T17:33:57","modified_gmt":"2024-11-06T17:33:57","slug":"bitcoin-75000-all-time-high-btc-is-overheated-now","status":"publish","type":"post","link":"https:\/\/wncen.com\/bitcoin-news\/bitcoin-75000-all-time-high-btc-is-overheated-now\/","title":{"rendered":"Bitcoin Records $75,000 All-Time High: Here’s If BTC Is ‘Overheated’ Now"},"content":{"rendered":"

Here’s what the legendary Bitcoin Market Value to Realized Value (MRVRV) Ratio says about whether Bitcoin is currently overheated or not.<\/p>\n

Bitcoin MVRV Ratio Has Risen Alongside The Latest Rally<\/h2>\n

In a CryptoQuant Quicktake post<\/a>, an analyst has discussed about the MVRV Ratio of Bitcoin. The “MVRV Ratio<\/a>” is an on-chain metric that keeps track of the ratio between the Bitcoin market cap and realized cap. The market cap here is just the total valuation of BTC’s circulating supply at the current spot price. The other metric, the realized cap<\/a>, is also a capitalization model for the asset, but it doesn’t work so simply.<\/p>\n

Related Reading: Ethereum Volatility Soon? Derivatives Exchanges Receive 82,000 ETH In Deposits<\/a><\/div>\n

Unlike the market cap, this model doesn’t put the same price on every coin in circulation; rather, it assumes that the last price at which a token was transacted represents its ‘true’ value.<\/p>\n

The previous transaction of any coin is likely to represent the last point it switched hands, so the realized cap essentially takes the sum of the cost basis of all tokens in circulation.<\/p>\n

One way to look at this model is as a measure of the amount of capital that the investors as a whole have put into the cryptocurrency. The market cap, in contrast, signifies the value that these holders are carrying in the present.<\/p>\n

When the MVRV Ratio is greater than 1, it means that the market cap is above the realized cap right now. Such a trend suggests the investors as a whole are in a state of net profit.<\/p>\n

On the other hand, the indicator being below this mark implies the average holder is currently underwater as they are holding their coins at a value below the price they bought them for.<\/p>\n

\"Bitcoin
The value of the metric appears to have been rising in recent days | Source: CryptoQuant<\/a><\/figcaption><\/figure>\n

As displayed in the above graph, the Bitcoin MVRV Ratio had surged to significant levels back when BTC had broken the November 2021 all-time high (ATH) in the first quarter of the year. An increase in the metric has also followed in the new ATH break<\/a>, but the metric is clearly not near the same high as earlier in the year yet.<\/p>\n

Historically, the cryptocurrency has made tops whenever the indicator has risen to high levels. As the quant has marked in the chart, however, how high is a ‘high’ MVRV level has been declining over the last few cycles.<\/p>\n

If the trendline drawn by the analyst holds, then the current cycle should see a top around when the MVRV Ratio would hit a value of around 3. At present, the metric is at 2, so there may still be a while to go before Bitcoin becomes overheated.<\/p>\n

Related Reading: Dogecoin Rockets Up 12%, But This FOMO Signal Could End Rally<\/a><\/div>\n

As for why the asset tends to get overheated when the MVRV Ratio shoots up, the reason is that investors become increasingly likely to take part in profit-taking the larger their gains get.<\/p>\n

BTC Price<\/h2>\n

At the time of writing, Bitcoin is trading around $74,100, up almost 8% over the last 24 hours.<\/p>\n

\"Bitcoin
The price of the coin appears to have shot up over the past day | Source: BTCUSDT on TradingView<\/a><\/figcaption><\/figure>\n
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"

Here’s what the legendary Bitcoin Market Value to Realized Value (MRVRV) Ratio says about whether Bitcoin is currently overheated or not. Bitcoin MVRV Ratio Has Risen Alongside The Latest Rally In a CryptoQuant Quicktake post, an analyst has discussed about the MVRV Ratio of Bitcoin. The “MVRV Ratio” is an on-chain metric that keeps track of the ratio between the Bitcoin market cap and realized cap. The market cap here is just the total valuation of BTC’s circulating supply at the current spot price. The other metric, the realized cap, is also a capitalization model for the asset, but it doesn’t work so simply. Related Reading: Ethereum Volatility Soon? Derivatives Exchanges Receive 82,000 ETH In Deposits Unlike the market cap, this model doesn’t put the same price on every coin in circulation; rather, it assumes that the last price at which a token was transacted represents its ‘true’ value. The previous transaction of any coin is likely to represent the last point it switched hands, so the realized cap essentially takes the sum of the cost basis of all tokens in circulation. One way to look at this model is as a measure of the amount of capital that the investors as a whole have put into the cryptocurrency. The market cap, in contrast, signifies the value that these holders are carrying in the present. When the MVRV Ratio is greater than 1, it means that the market cap is above the realized cap right now. Such a trend suggests the investors as a whole are in a state of net profit. On the other hand, the indicator being below this mark implies the average holder is currently underwater as they are holding their coins at a value below the price they bought them for. As displayed in the above graph, the Bitcoin MVRV Ratio had surged to significant levels back when BTC had broken the November 2021 all-time high (ATH) in the first quarter of the year. An increase in the metric has also followed in the new ATH break, but the metric is clearly not near the same high as earlier in the year yet. Historically, the cryptocurrency has made tops whenever the indicator has risen to high levels. As the quant has marked in the chart, however, how high is a ‘high’ MVRV level has been declining over the last few cycles. If the trendline drawn by the analyst holds, then the current cycle should see a top around when the MVRV Ratio would hit a value of around 3. At present, the metric is at 2, so there may still be a while to go before Bitcoin becomes overheated. Related Reading: Dogecoin Rockets Up 12%, But This FOMO Signal Could End Rally As for why the asset tends to get overheated when the MVRV Ratio shoots up, the reason is that investors become increasingly likely to take part in profit-taking the larger their gains get. BTC Price At the time of writing, Bitcoin is trading around $74,100, up almost 8% over the last 24 hours. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com<\/p>\n","protected":false},"author":542,"featured_media":651873,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88240],"tags":[11650,86686,88595,6481,1119,78790],"class_list":["post-651859","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin-all-time-high","tag-bitcoin-mvrv-ratio","tag-bitcoin-overheated","tag-bitcoin-rally","tag-btc","tag-btcusdt"],"acf":[],"yoast_head":"\nBitcoin Records $75,000 All-Time High: Here's If BTC Is 'Overheated' Now<\/title>\n<meta name=\"description\" content=\"Here's what the legendary Bitcoin Market Value to Realized Value (MRVRV) Ratio says about whether Bitcoin is currently overheated or not.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor\u2019s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn\u2019t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn\u2019t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.","sameAs":["https:\/\/www.linkedin.com\/in\/keshavverma29\/","https:\/\/x.com\/https:\/\/twitter.com\/keshavvarma29"],"url":"https:\/\/wncen.com\/author\/hououinkyouma29\/"}]}},"parsely":{"version":"1.1.0","meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Bitcoin Records $75,000 All-Time High: Here’s If BTC Is ‘Overheated’ Now","url":"http:\/\/wncen.com\/bitcoin-news\/bitcoin-75000-all-time-high-btc-is-overheated-now\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/wncen.com\/bitcoin-news\/bitcoin-75000-all-time-high-btc-is-overheated-now\/"},"thumbnailUrl":"https:\/\/wncen.com\/wp-content\/uploads\/2024\/11\/btc.png?resize=200%2C200","image":{"@type":"ImageObject","url":"https:\/\/wncen.com\/wp-content\/uploads\/2024\/11\/btc.png?fit=1792%2C1024"},"articleSection":"Bitcoin News","author":[{"@type":"Person","name":"Keshav Verma"}],"creator":["Keshav Verma"],"publisher":{"@type":"Organization","name":"NewsBTC","logo":"https:\/\/wncen.com\/wp-content\/uploads\/2020\/06\/cropped-cropped-cropped-favicon.png?w=32"},"keywords":["bitcoin all-time high","bitcoin mvrv ratio","bitcoin overheated","bitcoin rally","btc","btcusdt"],"dateCreated":"2024-11-07T09:00:08Z","datePublished":"2024-11-07T09:00:08Z","dateModified":"2024-11-07T09:00:08Z"},"rendered":"<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"NewsArticle\",\"headline\":\"Bitcoin Records $75,000 All-Time High: Here’s If BTC Is ‘Overheated’ Now\",\"url\":\"http:\\\/\\\/wncen.com\\\/bitcoin-news\\\/bitcoin-75000-all-time-high-btc-is-overheated-now\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/wncen.com\\\/bitcoin-news\\\/bitcoin-75000-all-time-high-btc-is-overheated-now\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2024\\\/11\\\/btc.png?resize=200%2C200\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2024\\\/11\\\/btc.png?fit=1792%2C1024\"},\"articleSection\":\"Bitcoin News\",\"author\":[{\"@type\":\"Person\",\"name\":\"Keshav Verma\"}],\"creator\":[\"Keshav Verma\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"NewsBTC\",\"logo\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2020\\\/06\\\/cropped-cropped-cropped-favicon.png?w=32\"},\"keywords\":[\"bitcoin all-time high\",\"bitcoin mvrv ratio\",\"bitcoin overheated\",\"bitcoin rally\",\"btc\",\"btcusdt\"],\"dateCreated\":\"2024-11-07T09:00:08Z\",\"datePublished\":\"2024-11-07T09:00:08Z\",\"dateModified\":\"2024-11-07T09:00:08Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/wncen.com\/p.js"},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/wncen.com\/wp-content\/uploads\/2024\/11\/btc.png?fit=1792%2C1024","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts\/651859","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/users\/542"}],"replies":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/comments?post=651859"}],"version-history":[{"count":4,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts\/651859\/revisions"}],"predecessor-version":[{"id":651956,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts\/651859\/revisions\/651956"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/media\/651873"}],"wp:attachment":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/media?parent=651859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/categories?post=651859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/tags?post=651859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}