[CryptoQuant: BTC Valuation Reset Underway, Market Gradually Returning to Fundamentals] According to CryptoQuant analyst MorenoDV_, Bitcoin's valuation reset is currently taking place. By observing the Bitcoin NVT Golden Cross indicator (smoothed using a 100-day moving average), the relationship between market valuation and on-chain economic activity can be assessed. NVT is considered Bitcoin's price-to-earnings ratio, where transaction volume replaces earnings to answer whether the network's market capitalization aligns with actual economic activity. The current NVT Golden Cross indicator shows that the short-term NVT is significantly below the long-term trend, indicating that Bitcoin's market value is undervalued relative to on-chain activity. Historically, when the indicator deviates deeply into negative territory, it often reflects bearish market sentiment and structural undervaluation of the network. In this cycle, the indicator once dropped to a historical low of -0.58 and has now recovered to approximately -0.32, suggesting that prices are gradually realigning with transaction-driven fundamentals, though still within a conservative valuation range. This phenomenon typically occurs during deleveraging and risk-averse phases, followed by an accumulation period that drives healthier price discovery. The current market is transitioning from deep undervaluation to equilibrium, with selective capital allocation increasing, potentially signaling structural improvements in the crypto market and long-term opportunities.