Bitcoin Advanced NVT Metric Indicates Continued Bullish Momentum
On May 22, Bitcoin reached a new all-time high of $111,970 but has since retraced to around $108,000 due to macroeconomic pressures. Analyst Burak Kesmeci predicts that Bitcoin will soon surpass this peak based on recent on-chain data.
Bitcoin Advanced NVT Metrics
The Advanced Network Value to Transactions (NVT) metric compares Bitcoin's market cap to its daily transaction volume. Key points include:
- Higher Advanced NVT values indicate increased investor speculation.
- Sustained levels above key thresholds often coincide with bull runs.
- Kesmeci noted that the Bitcoin Advanced NVT recently crossed above +2 standard deviation (+2xSD), signaling bullish market strength.
- Historically, such crossovers have led to upward momentum.
- Despite a current downward signal, remaining above +2xSD suggests potential for new price increases.
While bullish targets are set by analysts, macroeconomic factors, particularly US trade policy, could pose risks to future growth.
Current Market Overview
As of now, Bitcoin trades at $107,835, reflecting gains of 4.02% over the past week and 15.37% over the past month. Key statistics include:
- Daily trading volume is down 31.58% at $45.94 billion.
- Network fees increased by 51.03%, indicating higher transaction activity.
- Exchange inflows of $184 million were deemed mild, suggesting confidence among investors.
- Bitcoin's market cap stands at $2.13 trillion, maintaining its position as the largest cryptocurrency and fifth-largest asset globally.
