NYDIG: Bitcoin Rally Still Has Room to Run Despite Market Pullback
The crypto market faced renewed pressure during U.S. trading hours on Wednesday, as bitcoin (BTC) slipped nearly 2%, retreating to just above $107,000. The decline followed a strong run-up to record highs last week.
Altcoins saw deeper losses, with XRP dropping to $2.29, Solana (SOL) retreating to $170.68, and Dogecoin (DOGE) falling to $0.221 — each down between 3% and 5%.
Crypto-linked equities were also under pressure, particularly bitcoin mining stocks. Shares of Marathon Digital (MARA), Riot Platforms (RIOT), and Hut 8 Mining (HUT) each tumbled nearly 10%.
Companies holding bitcoin on their balance sheets weren’t spared either. GameStop (GME) saw its stock drop 11% after revealing it had acquired 4,710 BTC — a $500 million purchase at current prices. The amount left some investors underwhelmed, given the company previously raised $1.3 billion for bitcoin-related initiatives.
Bull Market Over? Not Yet, Says NYDIG
Bitcoin’s surge from its April lows to a fresh all-time high of $112,000 has raised concerns that the market is entering frothy territory, reminiscent of 2021.
But NYDIG’s research team pushed back on that idea, pointing to several key indicators that suggest the current bull run could have more legs.
For one, despite a roughly 7X increase from its November 2022 low near $15,000, bitcoin’s rally still pales in comparison to previous bull markets — including 2013’s 452X rise, 2017’s 112X move, and the 20X climb in 2021.
“Bitcoin is a more mature asset now, so expecting another 20X move may be unrealistic,” NYDIG noted. “Still, the historical perspective implies further upside may remain.”
Another key metric cited by NYDIG is the Market Value to Realized Value (MVRV) ratio, which currently stands at 2.4 — well below the 4.0 peak seen in 2021. The MVRV compares the total market value of bitcoin to the aggregated value based on the last time each coin changed hands.
“These aren’t exact predictors, but they offer a strong case that bitcoin’s rally may still be in the middle stages,” NYDIG concluded.
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