Bitcoin has recently reached record highs, nearing the $100,000 mark. However, on-chain analyses indicate that the current growth market still has potential and is not overheated.
MVRV Z-Score
The MVRV Z-Score measures the difference between Bitcoin’s market capitalization and its realized capitalization. When this score reaches high levels, it often signals a market peak. Currently, Bitcoin’s MVRV Z-Score remains below the danger zone, suggesting the market is not overly hot.
NUPL
NUPL (Net Unrealized Profit/Loss) evaluates unrealized profits or losses among investors. This metric is currently at a neutral level, indicating that most investors have yet to reach peak profits—a positive sign for the continuation of the growth market.
Puell Multiple
The Puell Multiple examines Bitcoin miners’ revenue. High levels often lead to miner sell-offs, putting downward pressure on prices. At present, the Puell Multiple is stable, showing that miners are not heavily incentivized to sell, which supports the upward trend.
Analysis from CryptoQuant
According to a report from CryptoQuant, current on-chain metrics suggest Bitcoin is not overvalued. This indicates that the growth market still has room to expand.
Conclusion
Based on on-chain metrics such as the MVRV Z-Score, NUPL, and Puell Multiple, the current Bitcoin market is not overheated. This suggests that the growth trend may continue in the near future. However, investors should remain cautious and closely monitor market fluctuations.