Released in the latest weekly report from Stack Funds, data from Bitcoin's network value to transaction (NVT) ratio still remains firmly bullish.
Report: NVT suggests Bitcoin "not overvalued"
According to analysts at Stack, despite Bitcoin gaining 30% in 2021 already, the gains are far from over. Far from warning that the top is imminent or already here, NVT is reminiscent of the start of a bull run, not the end.
"Currently, NVT is trading at the 70 handle, and lies roughly in the middle of the range. This suggests that Bitcoin not in the overvalued territory despite the recent price rally the past few weeks," the report summarizes.
"If anything, a potential spike in the NVT ratio could mean that Bitcoin is ready for yet another explosive move upwards."
An accompanying chart highlights a divergence in NVT versus price similar to those which preceded gains in 2017 and 2019.
Stack further noted the curious contrast between raging crypto and unimpressive stock markets, which despite lingering at or near all-time highs have failed to produce decisive moves so far this year.
Mainstream consumers wake up to Bitcoin
As Bitcoin and altcoins gain, however, public consciousness is responding in kind. A glance at Google Trends data shows that interest in the term "Bitcoin" worldwide is now at its highest since February 2018.
With the trend forecast to hit nearly 70% of the 2017 peak this week, the added interest could in itself perpetuate the bull market thanks to curiosity turning into buy-ins via mainstream on-ramps such as Square's Cash App and Coinbase.
Away from retail, meanwhile, statistician Willy Woo noted that high net worth individuals are "likely" fuelling much of the demand thanks to Bitcoin getting the seal of approval from institutions.
"It's whale spawning season," he tweeted on Thursday.
"While the narrative is institutional money, this phase, IMO, it's really institutions have given Bitcoin validation, and now we have family offices serving the wealthy rushing in needing exposure. There's a lot of requests for $1m+ buys happening."
A further tweet explained the impetus behind the sudden price gains, amounting to a price war for the dwindling BTC supply.
"When you have many buyers competing against each other for the coins, you don't just sit around and wait and let the market come to your low bids. Price premium runs up," Woo wrote.