Bitcoin Still “Overvalued” According To NVT Ratio

2022-12-20 18:31

On-chain data shows signs aren’t looking good for Bitcoin as the NVT ratio is indicating that the crypto is still overvalued right now.

Bitcoin NVT Ratio Continues To Be At High Values

As pointed out by an analyst in a CryptoQuant post, BTC is currently overvalued from an on-chain perspective. The “Network Value to Transactions (NVT) ratio” is an indicator that measures the ratio between the market cap of Bitcoin and its transaction volume (both in USD).

This ratio judges whether the current value of Bitcoin (that is, the market cap) is fair or not, by comparing it against the network’s ability to transact coins right now (the transaction volume). When the metric has a high value, it means the price of BTC is high compared to the volume, and thus the coin could be inside a bubble at the moment. On the other hand, low values suggest BTC may be undervalued as the chain has a high ability to transact coins (in comparison to the market cap) right now.

Here is a chart that shows the trend in the Bitcoin NVT ratio over the past year:

As the above graph highlights, the Bitcoin NVT ratio jumped up following the LUNA collapse back in May of this year and has since mostly stayed at similar or higher levels. This means that despite the price observing multiple crashes in the period, the coin’s value still became increasingly overvalued as volumes across the market sharply dropped.

Even after the FTX crash, which has delivered another solid blow to the crypto’s market cap, the metric has only climbed higher as it has registered a new high for the year recently. BTC has only been getting more and more overpriced as the bear has gotten deeper, suggesting the dire state of the market in terms of trading volumes.

The quant also notes that the number of UTXOs in loss (basically the amount of wallets/investors in loss), has been consistently rising throughout the bear.

Both these signs are certainly not in the favor of Bitcoin and may imply there is further pain ahead for investors. “A more extended bear market could be seen as a potential risk that could add selling pressure,” explains the analyst.

BTC Price

At the time of writing, Bitcoin is trading around $16,800, down 5% in the last week.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 98765.25 (+0.17%)
Объем 24H $103.26b
Изменеия 24h: 4.73 %, 7d: 11.54 %
Cегодня L: $94006.77 - H: $98767.29
Капитализация $1954.125b Rank 1
Цена в час новости $ 16864.48 (485.64%)

bitcoin overvalued ratio nvt on-chain still pointed

Источник: newsbtc.com

bitcoin overvalued → Результатов: 34


Фото:

Is Bitcoin Still Over Valued Despite a 50% Correction?

Bitcoin has turned bearish again this week following an 18% climb the previous week. Market sentiment is generally negative and analysts are eyeing further losses and a return to the $6k level. Is BTC still that overvalued? According to Metcalfe’s Laws BTC is Overvalued Bitcoin took another turn south during early Asian trading today when it fell almost 3% in just over an hour.

2019-12-4 12:00


Crypto Investor Believes ICOs Are No Longer Attractive As Most Are Overvalued

While savvy investors are always on the lookout for good initial coin offerings, the present may not be the best time to enter the crypto scene via ICOs. There are tons of new entrants into the market these days, but portfolio manager Brian Kelly believes that these ICOs don’t offer the best deal at all; […] Crypto Investor Believes ICOs Are No Longer Attractive As Most Are Overvalued was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

2018-6-25 19:42


Партнеры Currencies.ru

Аналог Notcoin - Blum - Играй и зарабатывай Монеты



Реклама на Currencies.ru

Самое свежее на Currencies.ru

Bitcoin Mining Costs Spike To Nearly $50K As Miners Look To AI For Survival

Bitcoin mining is now a highly competitive industry that’s not just expensive but technology-intensive as well. Individuals interested in joining the growing mining industry must invest in a specialized computer system, steady internet, reliable energy supply, and a good amount of skill to manage the process.

Bitcoin Diamond Hands Still Unbroken: 30.7% Of Supply Dormant For 5+ Years

Data shows the Bitcoin diamond hands have continued to sit tight recently as almost a third of the supply hasn’t been moved in five years. Bitcoin Has A Notable Part Of Its Supply Dormant Since Over Five Years In a new post on X, the market intelligence platform IntoTheBlock has discussed about how the most […]

Bitcoin Open Interest Is Shooting Up: Will Shorts Be Rekt This Time?

Data shows the Bitcoin Open Interest on exchanges has been heading up while the Funding Rate has turned negative recently. Bitcoin Open Interest Trend Suggests Speculators Are Back As pointed out by CryptoQuant community manager Maartunn in a new post on X, things appear to be heating up on the derivatives side of the market.

Bitcoin Difficulty Jumps 3% As Hashrate Slowly Recovers

On-chain data shows the Bitcoin mining difficulty has seen an increase in the latest adjustment, a consequence of the hashrate’s recovery. Bitcoin Mining Difficulty Has Seen A Positive 3% Adjustment Recently The “mining difficulty” refers to a feature built into the Bitcoin blockchain that controls how hard the miners would find it to mine on […]

Bitcoin Investors Have Turned Greedy Again: What Could Be Next For BTC?

Data shows that Bitcoin investors have again assumed a sentiment of greed after BTC’s surge of $64,000. Here’s what this could mean. Bitcoin Fear & Greed Index Is Now Pointing At ‘Greed’ The “Fear & Greed Index” is an indicator created by Alternative that tells us about the sentiment currently present among the investors of […]

These Are The Biggest Bitcoin Support & Resistance Zones, Analyst Reveals

An analyst has revealed the Bitcoin price zones that could act as major support and resistance centers for the cryptocurrency. A Large Number Of Investors Bought Bitcoin Inside These Zones In a new post on X, CryptoQuant author IT Tech has discussed the Bitcoin price levels that could act as support and resistance for BTC.