On-chain data shows the Bitcoin NVT ratio currently has values that would suggest the crypto is undervalued at the moment. Bitcoin NVT Ratio Is Moving On A Downtrend Right Now As pointed by an analyst in a CryptoQuant post, the BTC NVT ratio currently has low values that would mean the coin is undervalued right now. The “Network Value to Transactions” (or NVT in short) is an indicator that’s defined as the ratio between the Bitcoin market cap and the transacted volume during a specific time period. Basically, the metric evaluates the value of the crypto using its transaction volume. When the NVT value is high, it means BTC is currently overvalued compared to the ability to transact coins. Such a trend can be bearish for the crypto On the other hand, when the value of the the indicator is low, it implies Bitcoin may currently be undervalued at the moment. This kind of trend can be bullish for the price of the crypto. Related Reading | Bitcoin Market Dominance Hit Highest Since November 2021, No Alt Season in Sight Now, here is a chart that shows how the value of the BTC NVT ratio has changed over the past year: The value of the metric seems to be on a downtrend right now | Source: CryptoQuant As you can see in the above graph, the Bitcoin NVT ratio has been on a downtrend for a while now, and the metric currently has a low value. Related Reading | Bloody Altcoin January Shows Why Bitcoin Remains...
