Cryptocurrency Q&A
What is the NVT indicator in Bitcoin?
What is the NVT indicator in Bitcoin?
Federico
Mon Nov 04 2024
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7 answers
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The NVT indicator in Bitcoin, also known as the Network Value to Transactions Ratio, is a metric that compares the market value of Bitcoin to the value of transactions conducted on its network. It is similar to the PE Ratio in traditional stock markets, helping to assess whether the network is overvalued or undervalued based on the transaction activity it facilitates.
7 answers
Nicola
Wed Nov 06 2024
Over time, the utility of NVT Signal has diminished.
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SamsungShineBrightnessRadiance
Wed Nov 06 2024
These bands help in determining when Bitcoin is overbought, indicated by the red zone.
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KimonoElegance
Wed Nov 06 2024
This is attributed to the increasing number of coins being held off-chain.
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Giulia
Wed Nov 06 2024
To address this issue, an adaptation of NVT Signal has been introduced.
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TaegeukChampionship
Wed Nov 06 2024
The Indicator Overview highlights the NVT Signal.
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