Bitcoin (BTC) may have hit a new all-time high of $ 37,600, but one indication is that another bullish rally is approaching.
The Bitcoin Network Value to Transactions (NVT) ratio, published in the latest weekly report on Stack Funds, remains bullish.
Report: NVT suggests Bitcoin is “not overrated”
According to Stack analysts, despite the fact that Bitcoin will grow by 30% already in 2021, growth is far from over. The NVT is not a warning that the peak is imminent or has already reached, it is like the start of a climb, not an end.
NVT is currently trading at 70 and is roughly in the middle of the region. This indicates that Bitcoin is not in the region of revaluation despite the recent price increase in recent weeks, ”the report sums up.
“If anything, the potential increase in NVT could mean Bitcoin is ready for another explosive move.”
The accompanying diagram shows the discrepancy between NVT and price, similar to that which occurred before the 2017 and 2019 rallies.
The heap also pointed to the strange contrast between the booming cryptocurrency markets and disruptive stock markets, which have yet to be able to take decisive steps this year, while maintaining or approaching their historic highs.
Bitcoin is waking up to big consumers
However, as bitcoin and altcoins grow, public awareness is responding in kind. A look at the data from Google Trends shows that interest in the term “bitcoin” around the world has now peaked since February 2018.
With the trend expected to reach nearly 70% of its 2017 peak this week, additional interest could sustain the beef market as curiosity turns to purchases through major platforms such as the Square Cash app and Coinbase.
Meanwhile, statistician Willie Wu, outside the retail business, indicated that wealthy “probably” are fueling much of the demand thanks to Bitcoin support from organizations.
“Now is whaling season,” he wrote on Twitter on Thursday.
“Although storytelling is corporate money, at this point IMO is really the institutions that have offered Bitcoin validation, and we now have family offices serving wealthy people who need to be disclosed. There are many orders over $ 1 million.”
Another tweet explained why the sudden rise in prices triggered a price war to reduce the supply of bitcoin.
“When you have many buyers competing with each other for coins, you don’t sit and wait for the market to beat the lower prices. The price premium increases,” Wu wrote.