This chart presents Short-Term Holder variants of two classic on-chain metrics, and some of the most widely recognized, are the Realized Price, and its derivative the MVRV Ratio.

• STH Realized Price is the average price of the Short-Term Holder BTC supply, valued at the day each coin last transacted on-chain. This is often considered the 'on-chain cost basis' of this cohort.

• STH MVRV Ratio is the ratio between the market value (MV, spot price) and the Realized value (RV, realized price) for the Short-Term Holder Cohort. This allows for a visualization of Bitcoin market cycles, and the unrealized profitability of this cohort.

MVRV is an oscillator measuring the average Unrealized Profit/Loss multiple held by Bitcoin Short-Term Holders. The average unrealized profit/loss held within the entire coin supply can be calculated as: Avg Unrealized PnL = MVRV - 1

• MVRV value of 2.0 means the current price is 2x the market avg cost basis (STH BTC holder is up 2x).

• MVRV value of 1.0 means the current price is equal to the market avg cost basis (STH BTC holder is at break-even).

• MVRV value of 0.85 means the current price is -15% below the market avg cost basis (STH BTC holder is underwater by -15%).

💡 Hint: Extreme MVRV values to the upside, and downside can help to identify periods where the market is overheated, or undervalued, and where investor profitability has reached a large deviation from the mean (Realized Price).