Grayscale's Research Director: Bitcoin is Currently in a Severely Undervalued Zone, but Hasn't Hit the Lows of Previous Bear Market Cycles
On June 9th, Grayscale's investment research head, Zach Pandl, released a report indicating that as Bitcoin's price dropped below $60,000, hitting a new low for this cycle, market participants are keenly watching whether Bitcoin has entered a low zone.
Despite on-chain comprehensive valuation indicators showing that Bitcoin is indeed undervalued right now, it hasn't reached the extreme low levels seen in previous bear market cycles (like after the FTX collapse).
The report suggests that the current bear market's decline may be less severe than historical levels due to the relatively mild gains of the previous bull market, as well as improvements in market structure such as the availability of ETPs, deployment of wealth platforms, and institutional adoption.
Looking ahead, Grayscale advises investors to keep an eye on two key short-term catalysts: first, the progress of the CLARITY Act in the Senate (predictive markets show the outcome is hard to anticipate), and second, whether leveraged Bitcoin holders can stabilize their balance sheets.
Grayscale concludes that on-chain indicators show Bitcoin's price has dipped below its long-term average, making the current price level suitable for dollar-cost averaging for long-term investors; meanwhile, short-term traders might want to wait for the CLARITY Act to finalize and release clear signals before making moves.
#WhenWillBitcoinBottomOut
On June 9th, Grayscale's investment research head, Zach Pandl, released a report indicating that as Bitcoin's price dropped below $60,000, hitting a new low for this cycle, market participants are keenly watching whether Bitcoin has entered a low zone.
Despite on-chain comprehensive valuation indicators showing that Bitcoin is indeed undervalued right now, it hasn't reached the extreme low levels seen in previous bear market cycles (like after the FTX collapse).
The report suggests that the current bear market's decline may be less severe than historical levels due to the relatively mild gains of the previous bull market, as well as improvements in market structure such as the availability of ETPs, deployment of wealth platforms, and institutional adoption.
Looking ahead, Grayscale advises investors to keep an eye on two key short-term catalysts: first, the progress of the CLARITY Act in the Senate (predictive markets show the outcome is hard to anticipate), and second, whether leveraged Bitcoin holders can stabilize their balance sheets.
Grayscale concludes that on-chain indicators show Bitcoin's price has dipped below its long-term average, making the current price level suitable for dollar-cost averaging for long-term investors; meanwhile, short-term traders might want to wait for the CLARITY Act to finalize and release clear signals before making moves.
#WhenWillBitcoinBottomOut