The aggregate value of all Bitcoin calculated using the price at which each coin last moved on-chain, rather than the current market price. It represents the total cost basis of all holders and is a key input to the MVRV Z-Score.
The aggregate value of all Bitcoin calculated using the price at which each coin last moved on-chain, rather than the current market price. It represents the total cost basis of all holders and is a key input to the MVRV Z-Score.
Realized value (also called realized capitalization) is an alternative way to measure Bitcoin's total value. Instead of multiplying all coins by the current market price (market cap), realized cap values each UTXO at the price when it was last moved on-chain. This means a Bitcoin that last moved at $10,000 is valued at $10,000 regardless of the current market price. The sum of all UTXOs valued at their last-moved price gives the realized capitalization.
Realized cap serves as a proxy for the aggregate cost basis of all Bitcoin holders. If the market cap is significantly above the realized cap, the average holder is in profit — creating potential sell pressure. If the market cap drops below the realized cap, the average holder is underwater — reducing sell pressure and signaling deep value. The ratio of market cap to realized cap is the foundation of the MVRV metric.
Realized cap is much less volatile than market cap because it is updated only when coins actually move. During a market crash, the market cap drops immediately as the price falls, but the realized cap barely moves because most coins are not being transacted. This property makes realized cap a more stable reference point for valuation. It also filters out lost coins — since they never move, they maintain the value at which they were last transacted (often very low), reducing their impact on the aggregate metric.
Market cap values all Bitcoin at the current price: Price x Total Supply. Realized cap values each coin individually at the price when it last moved on-chain. For example, if you bought 1 BTC at $30,000 and have not moved it since, the realized cap counts your coin at $30,000 regardless of the current price. Market cap reflects what the market thinks Bitcoin is worth now; realized cap reflects what holders actually paid in aggregate. The gap between them reveals whether the market is overvalued or undervalued relative to holder cost basis.
Realized cap is important because it reveals the true cost basis of the market. When Bitcoin's market cap is far above its realized cap (high MVRV), holders are sitting on large unrealized gains and are more likely to sell — creating a risky environment. When market cap is near or below realized cap (low MVRV), holders are near or below their cost basis and are less likely to sell — creating a favorable environment for accumulation. This insight is not available from price charts alone.