Crypto Express

07/08 05:07

Could Bitcoin’s valuation be outpacing its utility

Another warning bell came from the NVT Ratio with Circulation, which spiked to 1,527—its highest in over a year.

This metric evaluates whether Bitcoin’s market cap is supported by transactional activity. A soaring NVT usually signals that valuation is outstripping usage, especially when network activity is weak. 

Combined with declining transaction volume and user growth, this surge may suggest Bitcoin is overvalued in its current state.

Although investors may still expect further gains, historically elevated NVT levels often precede local tops. 

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