Bitcoin NVT Ratio - Live Chart

The Bitcoin NVT Ratio represents the Network Value to Transactions ratio, which is essentially the crypto-market equivalent of the Price/Earnings ratio in stocks. Imagine it like a visual odometer of Bitcoin's network value against the daily USD volume transmitted through the blockchain. If the ratio is high, it indicates that the network value is outpacing the value being transmitted on the network i.e., Bitcoin may be overvalued and might be on for a price correction. Conversely, a low ratio suggests undervaluation, potentially hinting at a good buying opportunity. Trading-wise, like any indicator, it is most effective when used in conjunction with other signals. Ultimately, it can provide you with a useful trend about Bitcoin’s fundamental value and potential market tops and bottoms.