Bitcoin Retreats but NYDIG Sees More Fuel in the Tank for Bull Market
Cryptocurrencies saw a mild pullback early Wednesday during U.S. trading hours, cooling off from last week’s rally that pushed bitcoin to new record highs. Bitcoin (BTC) fell nearly 2% to around $107,500, while altcoins faced sharper declines. XRP dropped 4% to $2.29, Solana (SOL) slid 5% to $170.68, and Dogecoin (DOGE) retreated 3.5% to $0.221.
The selloff extended to crypto-exposed equities. Bitcoin mining companies led the decline, with Marathon Digital (MARA), Riot Platforms (RIOT), and Hut 8 (HUT) each losing close to 10%. GameStop (GME), which recently pivoted toward crypto treasury holdings, fell 11% after revealing a $500 million bitcoin purchase. The buy — totaling 4,710 BTC — drew criticism for being smaller than expected, especially after the company raised $1.3 billion to fund digital asset acquisitions earlier this month.
Is the Bull Market Overheating?
Despite the recent price weakness and some investor caution, NYDIG says it’s too early to call a top. In a research note, the firm highlighted that while bitcoin has climbed more than 7X from its November 2022 bottom near $15,000, this pales in comparison to previous bull runs. Bitcoin soared 452X during the 2013 cycle, 112X in 2017, and 20X in 2021.
NYDIG also pointed to the Market Value to Realized Value (MVRV) ratio — a gauge of how overheated the market may be. At its current level of 2.4X, MVRV remains well below the 4.0X peak seen during the last cycle in 2021, suggesting that bitcoin still has room to grow before hitting historic extremes.
“These aren’t hard targets, but they offer perspective,” the NYDIG team wrote. “We’re not seeing signs of exhaustion just yet — there’s still meaningful upside potential.”
