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

According to market news, CryptoQuant analyst MorenoDV_ stated that a valuation reset for Bitcoin is occurring.

By observing the Bitcoin NVT golden cross indicator (smoothed with a 100-day moving average), the relationship between market valuation and on-chain economic activity can be assessed. NVT is considered the price-to-earnings ratio for Bitcoin, where transaction volume replaces earnings to answer the question of whether the network's market value aligns with actual economic activity. The current NVT golden cross indicator shows that short-term NVT is significantly below the long-term trend, indicating that Bitcoin's market value is undervalued relative to on-chain activity.

Historically, when the indicator shows a deep negative divergence, it typically reflects low market sentiment and structural undervaluation of the network. In this cycle, the indicator fell to a historical low of -0.58 and has now rebounded to about -0.32, indicating that prices are gradually realigning with the transaction-driven fundamentals, but still remain in a conservative valuation range. This phenomenon usually occurs during deleveraging and risk-averse phases, followed by a market accumulation period that drives healthier price discovery. The current market is transitioning from deep undervaluation to equilibrium, with selective capital strengthening, which may signal structural improvements and long-term opportunities in the crypto market.