Analyst: On-chain activity evolution patterns of Bitcoin indicate that the market is entering a valuation rebuilding phase after a "deep undervaluation"

On December 19, according to CryptoQuant analyst MorenoDV, by observing the Bitcoin NVT Golden Cross indicator (which effectively assesses the evolution of market valuation and on-chain activity), it was found that a new round of Bitcoin valuation reset has already begun, and the market is gradually returning to a pricing model dominated by fundamentals.

From a theoretical perspective, the NVT indicator can be understood as Bitcoin's "price-to-earnings ratio." Its core logic is to replace traditional earnings data in the P/E ratio with on-chain transaction volume, thereby judging whether Bitcoin's market capitalization is supported by real on-chain trading activity.

Data shows that this indicator has recovered from a historic deep negative value of approximately -0.58 in this cycle to about -0.32. This change signifies that the market has passed the most severe phase of forced deleveraging and risk aversion caused by forced selling; additionally, the current indicator remains in negative territory, indicating that Bitcoin's current market pricing is still relatively conservative compared to its actual network utility.

Overall, the market is in a transitional phase from deep undervaluation toward valuation equilibrium. Historically, this stage often involves capital accumulation behaviors and a healthier price discovery process; meanwhile, capital allocation strategies shift from blind risk avoidance to more targeted choices.

In summary, the Bitcoin market is experiencing a key valuation reset, currently in a transition from deep undervaluation to valuation equilibrium. This process also presents investors with good opportunities for strategic accumulation and participation in healthier price discovery.

#比特币 # valuation reset