Bitcoin valuation reset in progress: NVT indicator reveals market transitioning from deep undervaluation to equilibrium

NonFungibleDegen · 2025-12-19T08:00:10+00:00

Bitcoin is undergoing a valuation reset, with the current short-term NVT indicator below the long-term trend, indicating that market value is undervalued. Historical data shows that negative deviations in the indicator are often accompanied by bearish market sentiment. Recently, the indicator rebounded from -0.58 to -0.32, reflecting that prices are gradually aligning with fundamentals, suggesting potential structural improvements and long-term opportunities in the crypto market.

NonFungibleDegen

2025-12-19 08:00:10

Abstract generation in progress

【Crypto World】Bitcoin is undergoing a valuation reset. You can see this from the NVT Golden Cross indicator — this metric, often called Bitcoin’s price-to-earnings ratio, uses trading volume to replace earnings in measuring whether the network’s market value aligns with actual economic activity.

What is the current situation? In the short term, the NVT is far below the long-term trend, essentially indicating that Bitcoin’s market value is significantly undervalued compared to on-chain activity. Historical data shows that whenever the indicator deviates so deeply into negative territory, it usually signals low market sentiment and severe underestimation of the network.

During this cycle, the indicator once dropped to a historic low of -0.58, and has now rebounded to about -0.32. This recovery process reflects that prices are gradually realigning with transaction-driven fundamentals. Although still in a relatively conservative valuation zone, the momentum is improving.

This phenomenon is often accompanied by deleveraging and risk aversion phases, followed by market accumulation. The transition from deep undervaluation to equilibrium indicates that capital is selectively increasing, which may signal structural improvements in the crypto market and the emergence of long-term opportunities.

BTC0,78%

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HashBrownies

· 2025-12-21 10:54

Underestimating the Rebound in this area, someone has finally explained NVT clearly. I never understood this indicator, but now I get it!

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MeltdownSurvivalist

· 2025-12-20 18:27

Wait, dropping from -0.58 to -0.32 is called a recovery? It still feels like crawling on the floor... But on the other hand, during such deep discounts, it's indeed a chance to scoop up bargains. It all depends on who has the courage to take the plunge.

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SybilAttackVictim

· 2025-12-19 08:27

Undervaluation to equilibrium? I just want to know if this is another setup before the next round of cutting leeks.

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FarmToRiches

· 2025-12-19 08:26

The undervaluation hasn't fully played out yet, and -0.32 has only rebounded halfway. The real excitement will come when it surges back to normal levels.

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FreeRider

· 2025-12-19 08:20

From undervaluation to rebound, this wave of momentum is indeed noticeable. NVT rising from -0.58 to -0.32 is no small feat.

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SatsStacking

· 2025-12-19 08:17

The undervaluation has dropped to 0.32. This rebound is indeed a bit interesting. However, I still want to wait and see; I feel the accumulation phase hasn't truly started yet.

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CommunityLurker

· 2025-12-19 08:04

Ah, it's NVT again, always bringing up this thing... But the -0.32 figure does sound pretty appealing.

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