Bitcoin (BTC) may have hit new all-time highs of $ 37,600, but an indicator suggests another bull run is imminent.
Bitcoin’s network value to transaction (NVT) data released in Stack Funds’ latest weekly report remains positive.
Report: NVT suggests Bitcoin is “not overvalued”
According to Stack analysts, the gains are far from over, even though Bitcoin rose 30% as early as 2021. NVT does not warn that the top is imminent or already here, but reminds of the beginning of a bull run, not the end.
“Currently, NVT is trading at 70 and is roughly in the middle of the range. This suggests that Bitcoin is not in the overvalued territory despite the recent price rally over the past few weeks,” the report concludes.
“If anything, a possible increase in the NVT ratio could mean that Bitcoin is poised for another explosive uptrend.”
A graphic opposite shows a divergence between NVT and price, similar to what it did before the profits in 2017 and 2019.
Bitcoin NVT ratio versus BTC / USD chart. Source: Stack Funds / CoinMetrics
Stack also noted the strange contrast between raging crypto and nondescript stock markets, which, despite sustained or near all-time highs this year, have so far failed to produce significant moves.
Mainstream consumers are waking up to Bitcoin
However, as Bitcoin and Altcoins gain in profit, public awareness is responding to in-kind contributions. A look at the data from Google Trends shows that the interest in the term “Bitcoin” has been highest since February 2018.
Google searches for “Bitcoin” worldwide. Source: Google Trends
With the trend forecast that this week could hit nearly 70% of its 2017 high, the extra interest could keep the bull market in itself as curiosity turns to buy-ins via mainstream ramps like Square’s Cash app and Coinbase.
The statistician Willy Woo stated that wealthy individuals “probably” fuel a large part of the demand, since Bitcoin has received the seal of approval from the institutions.
Bitcoin companies with a balance of over 1,000 BTC versus BTC / USD. Source: Glassnode / Twitter
“It’s Wallaich time,” he tweeted on Thursday.
“While the narrative is about institutional money, those institutions, IMO, actually got bitcoin validation, and now we have family offices serving the rich who are able to need exposure. There are many Requests for purchases over $ 1M. “
Another tweet explained the impetus for the sudden price hikes, which amounted to a price war for the dwindling supply of BTC.
“When there are many buyers competing for the coins, don’t just sit around and wait and let the market come to your low bids. The price premium goes up,” Woo wrote.
