Released in the latest weekly report from Stack funds, Bitcoin’s network value to transaction (NVT) ratio data still remains firmly bullish.
Report: NVT Suggests Bitcoin Is “Not Overvalued”
Despite a 30% increase in 2021, according to Stack analysts, earnings are far from over. NVT does not warn that the top is imminent or already here, but is reminiscent of the beginning of a bull run, not the end.
“Currently, NVT is trading on the 70 handle, and is roughly in the middle of the range. This suggests that Bitcoin is not in the overvalued territory, despite the recent price increase in recent weeks,” the report summarizes.
“If anything, a potential spike in the NVT ratio could mean Bitcoin is ready for yet another boom.”
An accompanying chart shows a divergence in N / A versus price similar to those that preceded gains in 2017 and 2019.
Stack further noted the curious contrast between raging crypto and unimpressive stock markets, which, despite holding onto or nearing record highs, have not produced any decisive moves so far this year.
Ordinary consumers wake up to Bitcoin
However, as Bitcoin and altcoins increase, the public consciousness is responding in the same way. A look at Google Trends data shows that worldwide interest in the term “Bitcoin” is now greatest since February 2018.
With the trend projected to hit nearly 70% of its 2017 peak this week, the extra interest in itself could perpetuate the bull market thanks to curiosity turning into buy-ins via regular on-ramps like Square’s Cash App and Coinbase.
Away from the retail industry, statistician Willy Woo, meanwhile, noted that wealthy individuals are “likely” to fuel much of the demand thanks to the fact that Bitcoin has been certified by the institutions.
“It is spawning time for whales,” he said tweeted on Thursday.
“While the story is institutional money, this phase, IMO, really gave institutions Bitcoin validation, and now we have family offices serving the rich who need exposure. Lots of requests are happening for $ 1 million + purchases.”
Another tweet explained the impetus behind the sudden price increases, which amounts to a price war for dwindling BTC supply.
“When you have a lot of buyers competing for the coins, don’t wait and let the market get to your low bids. Price premium is rising,” Woo wrote.