【On-chain Warning】The dynamic NVT signal for Bitcoin has broken through the red warning zone!

The current market value has far exceeded the on-chain actual trading activity, and the on-chain valuation model is issuing an overheating warning!

What is dynamic NVT?

It is similar to the price-to-earnings ratio (P/E) in traditional finance, but in the crypto world, it uses the ratio of market capitalization to the on-chain trading volume over the past 90 days, which can be used to assess whether the price is "overvalued."

Formula:

NVT signal = Current Market Value / 90-day Moving Average of On-chain Trading Volume

【Latest Observation | May 2025】：

The signal has broken through the red overvaluation range

BTC Current Price has exceeded $100,000+

Historically, similar NVT levels are often accompanied by stage tops or pullbacks.

Caution:

NVT does not account for Lightning Network and internal exchange transfers, which may underestimate some real usage situations.

Conclusion:

The market has entered the "not cheap zone", which does not mean an immediate peak, but it is sufficient to remind you to consider risk control and position rebalancing. This moment is not about panic, but about preparing for the next wave. #TRUMP #sol #DOGE: #BONK #BOME $BTC $ETH $BNB