Grayscale: On-chain metrics show that Bitcoin is currently undervalued, but has not yet reached the historical cycle bottom
Zach Pandl, the head of research at Grayscale, stated that on-chain valuation metrics indicate that Bitcoin is currently undervalued, but it has not reached the cheapness of previous cycle bottoms. He noted that this bear market may be shallower than past ones due to the smaller gains in the previous bull market, along with improvements in market structure such as ETP availability, wealth platform deployment, and institutional adoption.
Zach believes investors can focus on two major short-term catalysts: the progress of the Senate's "Clarity Act" and whether leveraged Bitcoin holders can stabilize their balance sheets. He remains optimistic about the "Clarity Act," but predicts that market signals show a low probability of the bill passing. Pandl believes the current price levels provide long-term investors with an opportunity to accumulate positions in batches, while short-term traders may wait for developments on the bill.
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