According to glassnode, the latest $BTC MVRV ratio data shows that Bitcoin holders are currently experiencing increased unrealized profits, which indicates growing investor confidence and a reduction in potential sell pressure. This on-chain metric compares Bitcoin’s current market price to the average cost basis of all holders. When the MVRV ratio rises, it often leads to stronger hands and less selling, which can support price stability or further upside in the short term. Traders should monitor MVRV trends closely for actionable signals, as shifts in this metric frequently precede significant market moves. Source: glassnode (@glassnode, May 21, 2025).

According to @Glassnode, Bitcoin holders are divided into Short-Term Holders (STH, less than 155 days) and Long-Term Holders (LTH, 155 days or more), each responding uniquely to price movements. Their MVRV (Market Value to Realized Value) ratios indicate the scale of unrealized profits or losses, directly reflecting market sentiment. For traders, tracking MVRV trends by group can reveal potential buy or sell pressure points, helping anticipate volatility in BTC price action. Monitoring these metrics is crucial for identifying shifts in holder confidence and timing market entries or exits. Source: Glassnode via Twitter.

According to Cas Abbé, traders should be cautious of a potential market top when Coinbase becomes the top app in the App Store, 'Cheapest Crypto' searches hit record highs, and major celebrities launch memecoin projects. Additionally, a Bitcoin MVRV ratio exceeding 3.5 is a critical indicator of market peaks, signaling potential overvaluation. Each of these indicators has historically preceded significant market corrections, suggesting traders should evaluate their positions when such conditions arise.