On the STH side, the difficulties persist.
With BTC trading around $65,000 – $70,000, the market remains well below the STH cost basis, which is estimated at $85,900.
Over the past six months, almost all investors who entered Bitcoin have found themselves at a loss.
This is reflected in the MVRV (Market Value / Realized Value), which is currently trading at bear market valuation levels.
This indicator compares the market value to the realized value, helping identify periods of undervaluation or overvaluation.
Today, the STH MVRV stands at around 0.77, well below the neutral level.
At the end of February, it even dropped to around 0.7, indicating that STH were sitting on average losses close to 30%.
When the STH MVRV remains stuck in negative territory like this, it is generally not a very positive signal.
It suggests that short-term holders are under significant pressure, which tends to make the market more erratic and fragile.
However, historically, these are often the periods when it can make sense to gradually build long-term positions.
Phases like this have often provided strong opportunities for the most patient investors.
Written by Darkfost