Bitcoin Extremely Undervalued, Here’s Proof

Bitcoin (BTC), the world’s leading digital currency, has experienced price fluctuations in the last month, dropping by over 24%. Host of Coin Compass HQ, Quinten Francois, says that in light of the crypto market volatility, Bitcoin is highly undervalued.

Bitcoin trading below “true value”

Notably, Francois maintains that the last time Bitcoin was this undervalued occurred during the collapse of FTX in 2022. Thus, in the past three years, the flagship cryptocurrency has not been this undervalued on the crypto market.

At the time of the FTX collapse in late 2022, the event triggered a massive shock wave, and many traders panicked. This led to a sharp drop in prices. In the current market cycle, there have been no major panic triggers beyond the recent trade tensions, which have nearly faded.

Nonetheless, Francois insists that if one studies Bitcoin’s Market Value to Realized Value (MVRV) and reserve risk, it becomes clear that BTC is cheaper than its “true value.” He is suggesting that the coin should be worth more than it is currently exchanging for on the market.

As of press time, Bitcoin is changing hands at $87,395.04, which represents a 0.49% increase in the last 24 hours. The asset previously climbed from $86,131.43 to a peak of $88,162.56 before volatility pushed it down to current levels.

Additionally, the trading volume, which has remained in the red zone by a significant 12.01% at $60.79 billion, has not supported Bitcoin’s rebound journey. The coin is likely to maintain stability if volume flips green, as the Relative Strength Index (RSI) at 31.58 indicates oversold conditions.

Hence, Francois’s message signals that the current price of Bitcoin is a buying opportunity for investors willing to bet on the leading crypto asset.

Bitcoin reclaiming $90,000 could trigger market rebound

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Meanwhile, Director of Global Macro at Fidelity, Jurien Timmer, has stated that Bitcoin experiencing a crash at this time is for the overall good of the asset. According to Timmer, the pullback helps reset the market and cools down the ridiculous excitement of weak investors.

The Bitcoin market might rebound with massive upward momentum once this consolidation phase is over. Institutional investors appear to have this outlook, as Metaplanet is already out to raise an extra $130 million to buy more BTC. The Japanese firm is looking to take advantage of the current undervaluation to increase its portfolio.

As U.Today reported, market participants are monitoring Bitcoin’s price movement. Many believe that the ability of the coin to regain the $90,000 level could position it for a sustained rebound.