CryptoQuant: BTC valuation reset is underway, and the market is gradually returning to fundamentals

PANews December 19 News, according to CryptoQuant analyst MorenoDV, the valuation reset of Bitcoin is underway. By observing the Bitcoin NVT Golden Cross indicator (smoothed with the 100-day moving average), the relationship between market valuation and on-chain economic activity can be assessed. NVT is considered Bitcoin’s price-to-earnings ratio, where transaction volume replaces earnings to answer whether the network’s market value aligns with actual economic activity. Currently, the NVT Golden Cross indicator shows that short-term NVT is significantly below the long-term trend, indicating that Bitcoin’s market value is discounted relative to on-chain activity. Historically, when the indicator deviates deeply negatively, it often reflects low market sentiment and structural undervaluation of the network. In this cycle, the indicator once dropped to a historical low of -0.58, and has now rebounded to about -0.32, showing that prices are gradually realigning with transaction-driven fundamentals, but still remain in a conservative valuation zone. This phenomenon typically occurs during deleveraging and risk-avoidance phases, followed by market accumulation periods that promote healthier price discovery. The current market is transitioning from deep undervaluation to equilibrium, with selective capital inflows possibly indicating structural improvements in the crypto market and long-term opportunities.