© Reuters. BTC’s NVM Ratio May Continue to Climb, According to Report
- Analytics platform CryptoQuant tweeted their latest analysis on BTC’s NVM Ratio.
- The firm’s report highlighted that BTC’s NVM Ratio surged from 0.26 to 0.6 at the start of 2023.
- BTC’s NVM Ratio may continue its upward trend according to the report.
The blockchain intelligence firm, CryptoQuant (@cryptoquant_com), tweeted their analysis for (BTC) this morning. In the tweeted analysis, CryptoQuant analyzed BTC’s NVM Ratio, which is a metric used to assess the fair value of a blockchain network based on the number of active users.
According to the report, a high NVM Ratio suggests that the network is overvalued and indicates that the price is too high compared to the number of active users. The opposite is true for a low NVM Ratio.
The NVM Ratio for the crypto market leader fluctuated between 0.6 and 2 in 2021, stated the report. Values above 2 are indicative of an overvalued network, which coincided with BTC’s price reaching an all-time high at the time.
CryptoQuant’s report added that BTC’s NVM Ratio began forming a descending pattern in 2022 – causing the figure to fall below 0.6 and signaling the start of the crypto bear market. BTC’s NVM Ratio then continued within the descending pattern until it hit a two-year low of 0.26 as a result of the FTX collapse.
The report mentioned, however, that BTC’s NVM Ratio experienced an inflection point in January 2023 and surged from 0.26 to 0.6, breaking its 100 EMA in the process. This increase in BTC’s NVM Ratio was accompanied by a rise in the market leader’s price, with BTC’s price rising from $17K to $21K.
BTC’s NVM Ratio (Source: CryptoQuant)
Currently, the NVM Ratio for BTC is showing an upward trend and has hit a 7-month peak of 0.75, stated the report. According to CryptoQuant’s analysis, it is highly probable that the NVM Ratio will continue its rally to reach values above 1.
Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
The post BTC’s NVM Ratio May Continue to Climb, According to Report appeared first on Coin Edition.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
