Blockchain analysis firm CryptoQuant announced that Bitcoin held by short-term investors has not yet reached the levels necessary for a major profit-taking wave.
CryptoQuant: Bitcoin Upside Potential of Up to 25% Still on the Table
According to the company’s analysis, the STH MVRV ratio is currently just 1.15, well below the 1.35 threshold that typically sees strong profit realization.
What is STH MVRV?
Market Value to Realized Value (MVRV) is an indicator used to measure the level of unrealized profits made by short-term investors. It is calculated by dividing Bitcoin’s market capitalization by the average purchase price (realized price) of short-term investors.
According to CryptoQuant’s analysis:
- The STH realized price surpassed $100,000 for the first time on July 11 and is currently above $102,000.
- This historical turning point shows that investors entered at higher prices and still have not moved into a strong profit area.
- An MVRV ratio of 1.35 historically indicates 35% unrealized profit, and whenever this threshold is crossed, the market experiences short-term corrections.
Up to 25% Upside Potential
The current MVRV ratio of 1.15 suggests there is still 20% to 25% upside room for Bitcoin compared to the historical threshold of 1.35. This could signal a new bull run window for investors.
*This is not investment advice.