Bitcoin’s Extreme Valuation
Bitcoin’s market value may be rising faster than network usage. According to the chart, valuation pressure in Bitcoin can be considered elevated.
#Bitcoin’s market value has been quite high relative to network usage in recent years. However, compared with the peaks around 2021 and 2025, we cannot see a definitive top signal.
#Since Binance� is one of the liquidity hubs, tracking the price there gives more accurate results. According to the chart, these levels cannot be considered cheap relative to Bitcoin network usage. It’s worth being cautious about the possibility that valuation is high compared with network activity. However, a high NVM does not mean that the price will fall immediately or move toward a specific target. NVM can remain high even as the price continues to rise. Still, this is a warning, and caution is warranted.
Rather than viewing NVM as a factor that determines price direction, it’s healthier to use it as a valuation filter based on usage. It makes it easier to monitor whether a price rise is supported by greater network activity. In the chart, NVM rose as the price increased, but active addresses did not follow suit. This is what highlights the valuation risk.
In short, these data suggest that Bitcoin is overvalued and call for caution about possible selling pressure. $BTC
Bitcoin’s market value may be rising faster than network usage. According to the chart, valuation pressure in Bitcoin can be considered elevated.
#Bitcoin’s market value has been quite high relative to network usage in recent years. However, compared with the peaks around 2021 and 2025, we cannot see a definitive top signal.
#Since Binance� is one of the liquidity hubs, tracking the price there gives more accurate results. According to the chart, these levels cannot be considered cheap relative to Bitcoin network usage. It’s worth being cautious about the possibility that valuation is high compared with network activity. However, a high NVM does not mean that the price will fall immediately or move toward a specific target. NVM can remain high even as the price continues to rise. Still, this is a warning, and caution is warranted.
Rather than viewing NVM as a factor that determines price direction, it’s healthier to use it as a valuation filter based on usage. It makes it easier to monitor whether a price rise is supported by greater network activity. In the chart, NVM rose as the price increased, but active addresses did not follow suit. This is what highlights the valuation risk.
In short, these data suggest that Bitcoin is overvalued and call for caution about possible selling pressure. $BTC
