Bitcoin Drops to $107K, Yet NYDIG Suggests Market Momentum Is Still Strong

Crypto Cools After Record Highs, but NYDIG Says the Rally Is Far From Over

Bitcoin’s momentum took a breather Wednesday morning, as digital assets retreated modestly during U.S. trading hours. Bitcoin (BTC) dropped nearly 2%, trading just above $107,000, as part of a broader cooldown in the crypto sector.

Altcoins bore the brunt of the decline, with XRP falling to $2.29, Solana (SOL) sliding to $170.68, and Dogecoin (DOGE) dipping to $0.221 — marking 3% to 5% losses on the day.

The pullback extended beyond tokens. Shares of bitcoin miners tumbled sharply, with Marathon Digital (MARA), Riot Platforms (RIOT), and Hut 8 (HUT) all down nearly 10%. Bitcoin treasury stocks also took a hit. GameStop (GME) plunged 11% after disclosing a 4,710 BTC purchase — roughly $500 million at current prices — a figure that left some underwhelmed considering the company raised $1.3 billion for bitcoin accumulation earlier this month.

NYDIG: Market Still Has Room to Climb

Some market watchers are beginning to question whether bitcoin’s recent surge — a 50% jump from its April lows to last week’s record high of $112,000 — marks the end of the current bull cycle. NYDIG doesn’t think so.

In a recent report, the firm highlighted that bitcoin’s current run-up, while significant, is modest compared to previous cycles. Since bottoming around $15,000 in late 2022, BTC has gained approximately 7X — a strong performance, but far behind historical rallies: 452X in 2013, 112X in 2017, and 20X in 2021.

Another key indicator, the Market Value to Realized Value (MVRV) ratio, currently sits at 2.4X — well below the 4.0X levels seen at the height of the 2021 bull market. The MVRV metric compares bitcoin’s total market cap to the on-chain cost basis of all coins, and lower readings typically signal room for further appreciation.

“These valuation metrics are still far from their historic extremes,” NYDIG wrote. “Taken together, they suggest we’re not yet at the top. The current cycle still has potential for more upside.”