Bitcoin NVT ratio suggests BTC may see another ‘explosive move’ as search interest spikes

Bitcoin (BTC) may have hit new all-time highs of $37,600, but one indicator suggests that yet another bull run is incoming.


Released in the latest weekly report from Stack Funds, data from Bitcoin’s network value to transaction (NVT) ratio still remains firmly bullish.

Report: NVT suggests Bitcoin “not overvalued”

According to analysts at Stack, despite Bitcoin gaining 30% in 2021 already, the gains are far from over. Far from warning that the top is imminent or already here, NVT is reminiscent of the start of a bull run, not the end.


“Currently, NVT is trading at the 70 handle, and lies roughly in the middle of the range. This suggests that Bitcoin not in the overvalued territory despite the recent price rally the past few weeks,” the report summarizes.

“If anything, a potential spike in the NVT ratio could mean that Bitcoin is ready for yet another explosive move upwards.”

An accompanying chart highlights a divergence in NVT versus price similar to those which preceded gains in 2017 and 2019. 

Bitcoin NVT ratio vs. BTC/USD chart. Source: Stack Funds/ CoinMetrics

Stack further noted the curious contrast between raging crypto and unimpressive stock markets, which despite lingering at or near all-time highs have failed to produce decisive moves so far this year. 

Mainstream consumers wake up to Bitcoin

As Bitcoin and altcoins gain, however, public consciousness is responding in kind. A glance at Google Trends data shows that interest in the term “Bitcoin” worldwide is now at its highest since February 2018.

Worldwide Google searches for “Bitcoin.” Source: Google Trends

With the trend forecast to hit nearly 70% of the 2017 peak this week, the added interest could in itself perpetuate the bull market thanks to curiosity turning into buy-ins via mainstream on-ramps such as Square’s Cash App and Coinbase.