Definition ∞ The MVRV Opportunity Zone refers to a specific range in the Market-Value-to-Realized-Value (MVRV) ratio, typically below 1.0, that historically indicates a digital asset is undervalued. When the MVRV ratio enters this zone, it suggests that the asset’s market price is below the average price at which all coins were last moved. This condition often signals a period of significant buying opportunity for long-term investors. It is a metric used to identify potential market bottoms.
Context ∞ On-chain analysts and crypto news frequently highlight when Bitcoin or other digital assets enter the MVRV Opportunity Zone as a strong signal for accumulation. This zone is considered a reliable indicator of investor capitulation and an attractive entry point for those with a long-term perspective. Its presence suggests that the asset is trading at a discount relative to its aggregate cost basis.
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