NVT Ratio Hits 2.5 Year Low: A Turning Point for Bitcoin?
coinpedia.org 18 July 2024 13:54, UTC -
Bitcoin’s NVT ratio hits a 2.5-year low, signaling strong buying sentiment in the Market.
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Analyst van de Pop suggests end of Bitcoin’s correction phase due to low NVT ratio.
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Reddit poll shows 55% of Mt. Gox creditors plan to hold Bitcoin; 18% aim to sell all.
Bitcoin, the largest cryptocurrency, has been the center of attention recently due to its price surge to $65k after falling to $54k. Adding to the excitement, Bitcoin’s NVT ratio has hit a historic low not seen in over 2.5 years.
Meanwhile prominent crypto crypto analyst Michael van de Pop suggests this could signal the end of Bitcoin’s recent downturn. The strong buying sentiment in the market is further indicated by Bitcoin’s RSI standing at 63.60.
NVT Ratio Hits 2.5 Year Low
In a recent tweet, Michael van de Pop pointed out an important milestone in Bitcoin’s market performance, highlighting the NVT ratio dropping to its lowest point in the past 2.5 year. The NVT ratio, which measures network value relative to transaction volume, has historically been a crucial indicator for Bitcoin’s market health.
The NVT ratio is an important indicator for #Bitcoin.
It hits the lowest, negative number in the past 2.5 years.
Worse than the collapse during Luna, or the correction in the Summer of last year, or after the Bitcoin listing.
The correction is over, buckle up. pic.twitter.com/JwbxRouGNy
— Michaël van de Poppe (@CryptoMichNL) July 18, 2024
Van de Pop noted that this drop in the NVT ratio is especially unusual, surpassing declines seen during significant events like the Luna collapse or recent market corrections. However, a negative NVT ratio suggests a shift in market dynamics, with strong buying pressure compared to on-chain transaction volume.
Lastly van de Pop notes, that this dip in the NVT ratio indicates that the recent correction phase for Bitcoin may be ending. He urged investors to prepare for potential market movements, suggesting that the worst of the correction could be behind us.
Mt. Gox Creditors To Hold Bitcoin
A recent poll conducted on the Reddit Mt. Gox forum has shed light on the intentions of creditors once they receive compensation. Out of the participants, 55% (260 people) expressed their decision to retain their Bitcoin holdings rather than selling them.
A vote on the Reddit MtGox forum showed that among the 467 members who participated in the vote, 260 people chose not to sell the bitcoins after receiving the compensation, accounting for the highest proportion of 55%. 88 people chose to sell all, accounting for 18%, ranking… pic.twitter.com/9OaOxOOK2P
— Wu Blockchain (@WuBlockchain) July 18, 2024
Meanwhile, 18% (88 people) indicated their plan to liquidate all of their Bitcoin to gain the profit. Another 15% (68 people) intend to sell between 1% to 25% of their holdings, while a smaller segment, 6% (26 people), plans to sell between 25% to 50%.
Perhaps the poll shows that creditors have different plans for their Bitcoin, but most of them prefer to keep it for the long term.
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