On-chain Data School (Part 1): Do you know what the market-wide average cost of BTC is?

貝格先生

2025-04-03 21:00

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Original Article Title: "On-chain Data School (Part 1): Do You Know What the Market-Wide BTC Average Cost Is?"

Original Article Author: Mr. Berg, On-chain Data Analyst

This article is the first part of the On-chain Data School series, with a total of 10 parts. Take you step by step to understand on-chain data analysis. Interested readers are welcome to follow this series of articles.

TLDR

· This article will introduce "one on-chain analysis concept" and "three on-chain data."

· MVRV represents the market-wide profit status

· Realized Price represents the average cost of holding BTC in the entire market

· Realized Cap can be thought of as "how much money the market has spent on buying BTC overall"

What Is Realized Cap?

Realized Cap, also known as Realized Market Cap, refers to "multiplying each unit of BTC by the price at the last transfer, then summing it up."

In simple terms: each transfer can be viewed as a "transaction," so multiplying the corresponding number of BTC by the price of the last transfer is equivalent to how much cost that transaction incurred. Adding up these costs gives you the Realized Cap.

Realized Cap Chart

What Is Realized Price?

Realized Price (RP), also known as Realized Price, is the number obtained by dividing "Realized Cap by the current BTC circulation."

We can interpret this as: "total market cost of buying BTC / how many BTC were bought."

In other words, this is the "average cost of BTC in the entire market." By the way, it's always a good buying opportunity when the price is below RP!

Realized Price Chart

(Price Below Realized Price)

What is MVRV?

MVRV, which stands for MV divided by RV, represents the market's profit status.

MV refers to the current BTC market value, i.e., "market price x circulation"; while RV is Realized Cap.

At the same time, if we divide both the numerator and denominator of the formula by circulation, we will find that MVRV can also be expressed as "market price / RP." For example, if MVRV = 2, it represents an average market profit of 100%.