Bitcoin Price Rally: NVT Golden Cross Signals Market Stability Amid Investor Surge
Bitcoin Price Rally: NVT Golden Cross Signals Market Stability Amid Investor Surge
Bitcoin has surpassed the $100,000 mark, sparking speculation about a potential new all-time high (ATH). However, the price has yet to breach its current ATH of $109,114, leading some to question if Bitcoin is overheated.
NVT Golden Cross Indicates Market Stability
The Network Value to Transaction (NVT) Golden Cross, a key on-chain metric, suggests the market remains in a safe zone. According to CryptoQuant, the NVT Golden Cross currently stands at 1.51, well below the 2.2 threshold that historically signals overheating. This metric compares Bitcoin's market capitalization to its transaction volume, helping determine if the asset is overvalued or undervalued in the short term.
While the NVT Golden Cross is climbing, it does not yet indicate a red flag. However, traders are advised to monitor its development closely to avoid being caught off guard by potential market shifts.
Investor Appetite on the Rise
Bitcoin is experiencing heightened investor interest, with Open Interest reaching $74 billion as prices rallied. This surge in futures market confidence is complemented by significant institutional inflows. Bitcoin ETFs saw $329.02 million in inflows on May 20, 2025, highlighting growing institutional confidence.
In the last 24 hours, Bitcoin's price has increased by 1.59% to $106,654.59, reflecting sustained momentum in the market. As investor appetite grows, Bitcoin's price rally continues to attract both retail and institutional traders, positioning it as a focal point in the cryptocurrency market.
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