Data from popular analytics firm Glassnode shows that Bitcoin NVT (Network Value to Transactions) Ratio has been at the lowest point during the entire cryptocurrency rally. The current low level of BTC NVT shows that the flagship cryptocurrency is extremely oversold in the market.
Bitcoin Extremely Oversold in the Market Since Rally
Data from Glassnode shows that BTC NVT is almost as low as it was in March last year, when the cryptocurrency went lower on May 13th to $48,000, pushing equity and crypto markets deep down.
Bitcoin NVT is calculated by dividing the total market capitalization by the volume of USD transferred on the BTC blockchain per day.
Back in March 2020, BTC lost 50% per day, plunging below the $4,000 level while crude oil plummeted below zero.
The leading cryptocurrency slid below $45,000 for the first time in almost three months after the CEO of the electric-car manufacturing company seemed to agree with a Twitter post that Tesla might sell off its Bitcoin holdings.
“Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings. With the amount of hate @elonmusk is getting, I wouldn’t blame him”.
— Elon Musk (@elonmusk) May 16, 2021
Musk simply replied “indeed” without specifying whether Tesla had indeed sold off its bitcoin holdings or agreed with the sentiment that he faced criticism.
Elon Musk Looking for Green Cryptocurrency Over Bitcoin
On May 12, Musk announced that Tesla will no longer accept BTC as payments for car purchases, citing environmental concerns, triggering a 17% slide in the value of the cryptocurrency.
Musk’s decision to stop accepting Bitcoin as payment over environmental concerns has been well-received by some of Tesla’s investors.
He clarifies that he remained a strong believer in cryptocurrencies, but not at the cost to the environment while announcing that Tesla is currently looking to accept energy-efficient cryptocurrencies.