Bitcoin Retraces to $107K, But NYDIG’s Report Shows Market Remains Healthy

NYDIG: Bull Market Still Has Legs Despite Crypto Pullback

Bitcoin and the broader crypto market saw a modest pullback during U.S. trading hours on Wednesday morning, paring gains from the recent surge. Bitcoin (BTC) dropped nearly 2% to hover just above $107,000, while major altcoins suffered steeper losses. XRP slipped to $2.29, Solana (SOL) fell to $170.68, and Dogecoin (DOGE) declined to $0.221 — all down between 3% and 5%.

Crypto-related equities were hit even harder. Bitcoin mining stocks, including Marathon Digital (MARA), Riot Platforms (RIOT), and Hut 8 (HUT), each fell around 10%. Shares of bitcoin treasury firms also stumbled, with GameStop (GME) plunging 11% after disclosing a $500 million bitcoin purchase (4,710 BTC). The announcement was seen as underwhelming by some, given that the company recently raised $1.3 billion for crypto investments.

End of the Cycle?

Bitcoin has rallied nearly 50% since its April lows, recently reaching an all-time high of $112,000 — prompting comparisons to the euphoric peaks of 2021. But NYDIG analysts argue the current cycle still has plenty of room to run.

They point out that since the November 2022 bottom around $15,000, bitcoin has increased roughly 7-fold. That’s a strong recovery, but still pales in comparison to previous bull cycles: a 452X surge in 2013, 112X in 2017, and 20X in 2021.

Bitcoin’s maturity as an asset may naturally temper future gains, but NYDIG believes this cycle hasn’t yet reached its full potential. Supporting this view is the Market Value to Realized Value (MVRV) ratio — a key valuation metric that compares bitcoin’s market cap to the value at which coins last moved. Currently at 2.4X, the MVRV remains well below the 4.0X peak seen in 2021.

“These metrics are only general indicators,” NYDIG noted, “but they still point to significant upside potential for bitcoin.”