The Bitcoin NVT quota suggests that BTC may see another “explosive move” as a surge in search interest

189
SHARES
1.5k
VIEWS
ADVERTISEMENT


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.

Related articles

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 despite the recent price rally in recent weeks, Bitcoin is not in the overvalued territory,” the report concludes.

“If anything, a possible spike in the NVT ratio could mean Bitcoin is poised for another explosive uptrend.”

The 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 pointed out the strange contrast between raging crypto and nondescript stock markets, which despite persistent or near all-time highs this year have so far not produced any significant moves.

Mainstream consumers are waking up to Bitcoin

However, as Bitcoin and Altcoins gain in profits, 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 added interest could keep the bull market in itself as curiosity turns into buy-ins via mainstream ramps like Square’s Cash App and Coinbase.