On-chain Data Academy (1): Do you know what the average cost of BTC in the entire market is?

This article is part of the On-Chain Data Academy series of 10 articles. Take you step by step to understand on-chain data analysis, welcome interested readers to follow. (Synopsis: On-chain data: Bitcoin whales begin to re-accumulate BTC, the cottage season is not yet arrived but has passed?) (Background supplement: On-chain analysis beginner course" fully grasps the basic key indicators of the crypto market, concepts and tools are all here) TLDR This article will introduce "one on-chain analysis concept" and "three on-chain data" MVRV represents the profitability of the whole market Realized Price represents the average cost of holding BTC in the whole market Realized Cap can be thought of as "how much did the market spend on BTC" What is Realized Cap? Realized Cap, also known as realized market capitalization, is "multiplying the price of each unit of BTC at the time of the previous transfer and adding it up." To put it simply: each transfer can be considered a "transaction", so multiplying the corresponding number of BTC by the price of the previous transfer is equivalent to how much the transaction costed. Add up these costs and you get Realized Cap. Realized Cap chart What is Realized Price? Realized Price (RP), also known as Realized Price, is the number of "Realized Caps divided by the current BTC in circulation". We can interpret it as: "the total cost of buying BTC in the whole market / how many BTC are bought". In other words, this is actually the "average cost of BTC in the whole market". By the way, when the price is lower than RP, it is a good opportunity to bottom out! Realized Price Chart Price less than Realized Price MVRV? MVRV, which means MV divided by RV, represents the profitability of the market. MV refers to the current BTC market capitalization, that is, "market price x liquidity"; RV is Realized Cap. At the same time, if you divide the numerator and denominator in the formula by the circulating amount at the same time, you will find that MVRV can also be expressed as "market price / RP". For example, if MVRV = 2, it means that the market has an average profit of 100%. MVRV Chart Summary The above is all the content of the on-chain data academy (1), readers who are interested in learning more in-depth on-chain data analysis, remember to follow this series of articles! If you want to see more on-chain data analysis and teaching content, please follow my Twitter (X) account! Hope this article helps you, thanks for reading. Related reports After three consecutive months of Bitcoin's decline, on-chain data shows that it is about to return to the bull? Everyone is a chain detective, ZachXBT's commonly used 12 tracking tools to sort out the bear market is really coming? Bitcoin's on-chain "bull index" fell to a two-year low, and the community was surprised by the 20,000 bloodbath target [On-chain data academy (1): Do you know what the average cost of BTC in the whole market is? This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".