NYDIG: Bitcoin’s Bull Run Could Still Be in Early Innings

Crypto markets faced renewed selling pressure on Wednesday, with U.S. morning hours bringing a modest retreat from last week’s highs. Bitcoin (BTC) dropped nearly 2% to trade just above $107,000, while altcoins saw sharper declines.

Among the hardest hit were XRP, Solana (SOL), and Dogecoin (DOGE), which fell between 3% and 5% on the day. The pullback also hit crypto-related equities, particularly bitcoin miners. Marathon Digital (MARA), Riot Platforms (RIOT), and Hut 8 Mining (HUT) each shed close to 10%.

Bitcoin treasury stocks didn’t escape the downturn either. GameStop (GME) slid 11% after disclosing a $500 million bitcoin purchase totaling 4,710 BTC. The market’s response was lukewarm, especially given the company had raised $1.3 billion for bitcoin acquisitions weeks earlier.

Froth or Just the Beginning?

With bitcoin up nearly 50% since early April and briefly topping $112,000, some investors are questioning whether the rally is running out of steam. But according to digital asset firm NYDIG, the bull market could still have significant room to expand.

NYDIG analysts pointed to bitcoin’s historical performance. Since bottoming near $15,000 in late 2022, BTC has increased roughly sevenfold — a strong move, but still far below the exponential rallies of past cycles: 452X in 2013, 112X in 2017, and 20X in 2021.

“While bitcoin is a more established asset today, historical context shows this cycle may not be close to peaking,” said NYDIG.

They also flagged the Market Value to Realized Value (MVRV) ratio, which is sitting at 2.4 — still well under previous cycle tops, including the 2021 peak of 4.0. MVRV is widely used to gauge market overheating by comparing market cap to realized cap.

“These are guideposts, not gospel,” NYDIG noted. “But they suggest the current bull phase is likely not exhausted.”