Bitcoin Short-Term Holder MVRV Ratio Falls to 0.82 Indicating Market Stress
Bitcoin's on-chain metrics indicate market stress, as the short-term holder (STH) MVRV ratio has dropped to 0.82, historically linked to capitulation. Key points include:
- The STH MVRV ratio compares current BTC price to the average cost basis of coins held by short-term holders.
- A ratio below 1.0 means recent buyers are experiencing unrealized losses; at 0.82, short-term holders are down about 18% on average.
- This level is similar to previous lows of 0.84 in August 2024 and 0.77 in November 2022, which preceded market bottoms.
- Deep MVRV drawdowns often signal weak hands capitulating while smart money accumulates.
- Since February, long-term holders have increased their supply by approximately 500,000 BTC, while short-term holders have sold over 300,000 BTC.
