The Short-Term Holder Market Value to Realized Value (STH MVRV) ratio has recently fallen below its 155-day average, indicating a cooling of market activity and shifts in investor sentiment.
What is STH MVRV and its significance
The STH MVRV ratio compares the price paid by short-term holders for Bitcoin with its current market price. A dip below the 155-day average suggests that many short-term investors are breaking even, which can reflect declining market momentum.
Media speculation about the end of the bull market
Despite this technical shift, some media outlets have rushed to declare the end of the current bull cycle. In the past 24 hours, headlines have emerged claiming that the cycle is over, a pattern seen in previous market phases.
Should we be concerned about the dip?
Historically, similar dips in STH MVRV have occurred even during broader uptrends. These moments typically separate strong hands from weak ones, shaking out overleveraged or nervous traders while providing long-term holders a chance to accumulate at better prices.
While the dip in STH MVRV indicates a cooling short-term enthusiasm, it should not be misinterpreted as a definitive end to the bull market. Investors should remain cautious and avoid being swayed by media-driven panic narratives.
