As per crypto analytics platform Glassnode, Bitcoin NVT (Network Value to Transactions) Ratio has been at the lowest point during the whole Bitcoin and crypto market rally that got initiated in the month of October, 2020. The rally continued in January, propelling BTC above the 20,000 USD mark and then leading it towards the ATH level of 64,000 USD.
It is to be noted that the aforementioned ratio can be calculated by dividing the market cap of Bitcoin by the volume of USD transferred on the Bitcoin blockchain per day and it displays if BTC is in the overbought or oversold territory.
According to a chart released by Glassnode, BTC NVT is almost as down as it was in the month of March last year. It coincided with the Corona-led Black Thursday, pressing the entire stock market along with cryptocurrency markets deep down.
At the time, Bitcoin dropped around fifty percent of its value in a single day and suddenly dropped below the level of 4000 USD. Surprisingly, crude oil quotes dropped below zero.
Paolo Ardoino, CTO at Bitfinex, said:
“Bitcoin’s critics will once again pounce on the many colourful personalities that seek to connect themselves with the space. However, it is important to remember that bitcoin is much bigger than the celebrities of today or indeed the makers and shakers in the space. Bitcoin and decentralized ledger technologies represent a quantum leap forward. At the end of this decade the business of money and finance will be in a very different place.”
The present low level of Bitcoin NVT comprehensively shows that the largest digital currency by market cap is very much oversold.
With the present market scenario, where do you think Bitcoin is headed towards? To the Moon or Mars? Or is it showing signs of some further plunge? Let us know in the comments below!