OBTC - A Framework For Valuing Bitcoin

• The MVRV ratio is market capitalization divided by realized capitalization, which measures the price of bitcoin relative to the average on-chain cost basis of all participants in the market.
• A mean reversion metric, the MVTV ratio is market capitalization divided by thermo capitalization or the cumulative USD value paid to miners to secure the network.
• The RPV ratio is realized on-chain profits in USD divided by realized capitalization, measuring the difference between daily profit-taking behavior and buyers’ average cost basis.
• Another measure of price inefficiencies is the Short Term Holder (STH) Profit/Loss (P/L) ratio, which is the short-term supply of bitcoin at a profit divided by the short-term supply at a loss.

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