{"id":463904,"date":"2022-06-16T20:40:00","date_gmt":"2022-06-16T17:40:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/further-downside-is-expected-but-multiple-data-points-suggest-bitcoin-is-undervalued\/"},"modified":"2022-06-16T20:40:00","modified_gmt":"2022-06-16T17:40:00","slug":"further-downside-is-expected-but-multiple-data-points-suggest-bitcoin-is-undervalued","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/further-downside-is-expected-but-multiple-data-points-suggest-bitcoin-is-undervalued\/","title":{"rendered":"# Further downside is expected, but multiple data points suggest Bitcoin is undervalued"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2dcec0d8f1d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2dcec0d8f1d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/further-downside-is-expected-but-multiple-data-points-suggest-bitcoin-is-undervalued\/#%E2%80%9D_Further_downside_is_expected_but_multiple_data_points_suggest_Bitcoin_is_undervalued_%E2%80%9C\" >&#8221; Further downside is expected, but multiple data points suggest Bitcoin is undervalued &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/further-downside-is-expected-but-multiple-data-points-suggest-bitcoin-is-undervalued\/#Addresses_holding_at_least_1_BTC_hits_a_new_high\" >Addresses holding at least 1 BTC hits a new high<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/further-downside-is-expected-but-multiple-data-points-suggest-bitcoin-is-undervalued\/#%E2%80%9CBTC_is_cheaper_than_it_looks%E2%80%9D\" >\u201cBTC is cheaper than it looks\u201d<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Further_downside_is_expected_but_multiple_data_points_suggest_Bitcoin_is_undervalued_%E2%80%9C\"><\/span>&#8221; Further downside is expected, but multiple data points suggest Bitcoin is undervalued &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>The outlook across the cryptocurrency ecosystem continue to dim as the sharp downtrend that was initially sparked by the collapse of Terra now <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to have claimed the Singapore-based crypto venture capital firm Three Arrows Capital (3AC) as its next victim.\u00a0<\/p>\n<p>As large crypto projects and investment firms begin to collapse on a weekly basis, the prospect of a long, drawn out bear market is a reality investors are beginning to accept.\u00a0<\/p>\n<p>Based on a recent <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TheRealPlanC\/status\/1536949463872413696\">poll<\/a> conducted by market analyst and pseudonymous Twitter user Plan C,\u00a0 41.6% of respondents indicated that they thought the Bitcoin (BTC)\u00a0bottom will fall between the $17,000 to $20,000 range.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/fe1410f6-e743-4070-89eb-08b077b0251c.jpg\"><figcaption style=\"text-align: center;\"><em>Total Bitcoin supply in profit held by short-term holders. Source: Twitter<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Addresses_holding_at_least_1_BTC_hits_a_new_high\"><\/span>Addresses holding at least 1 BTC hits a new high<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the midst of the heightened volatility and rapid price decline for Bitcoin, many would expect to see traders dumping their holdings and fleeing to the sidelines in a bid to maintain their purchasing power. <\/p>\n<p>While it has indeed been the case that falling prices and liquidations have pushed many traders out of the market, low-priced Bitcoin has also attracted some buyers who have patiently been waiting for the right entry point. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/3fe5a325-806a-47c8-b536-8ff7bccff697.png\"><figcaption style=\"text-align: center;\"><em>Number of Bitcoin addresses holding a balance \u2265 1 BTC. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Data shows that the number of Bitcoin addresses that hold at least 1BTC has now hit a new all-time high and it appears that it will increase in the near future if sub-$20,000 BTC continues to attract buyers. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Is the bottom in? Raoul Pal, Scaramucci load up, Novogratz and Hayes weigh in<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"%E2%80%9CBTC_is_cheaper_than_it_looks%E2%80%9D\"><\/span>\u201cBTC is cheaper than it looks\u201d<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Market tops and bottoms are usually overreactions to developments and retail traders have a tendency to FOMO when the price is rising, yet they are quick to sell when bad <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> starts to spread.<\/p>\n<p>A more nuanced analysis of the current value of Bitcoin was discussed by Jurrien Timmer, director of global macro at Fidelity, who posted the following <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/timmerfidelity\/status\/1536902560463847425\">chart<\/a> and questioned if \u201cBTC is cheaper than it looks?\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/f427e5fd-3552-4e8f-bbd7-c2a44b3493eb.jpg\"><figcaption style=\"text-align: center;\"><em>Bitcoin price vs. value. Source: Twitter<\/em><\/figcaption><\/figure>\n<p>Timmer said, <\/p>\n<blockquote><p>\u201cIf we consider a simple \u201cP\/E\u201d metric for BTC to be the price\/network ratio, then that ratio is back to 2017 and 2013 levels, even though BTC itself is only back to late 2020 levels. Valuation often is more important than price.\u201d <\/p><\/blockquote>\n<p>Timmer added that BTC is currently priced below its fair market value with the Bitcoin dormancy flow indicator, which <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TimmerFidelity\/status\/1536902578323300352\">shows<\/a> \u201chow technically oversold [it] is.\u201d <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/152d9893-8fb3-4648-9333-ab3a4a9d3076.jpg\"><figcaption style=\"text-align: center;\"><em>Bitcoin dormancy flow. Source: Twitter<\/em><\/figcaption><\/figure>\n<p>Timmer said,<\/p>\n<blockquote><p>\u201cGlassnode\u2019s dormancy flow indicator is now to levels not seen since 2011.\u201d<\/p><\/blockquote>\n<p>Taken together, the rise in Bitcoin addresses holding more than 1 BTC combined with the asset&#8217;s historically oversold price and undervalued price\/network ratio suggests that the downside possibility may not be as bad as many traders think. <\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/further-downside-is-expected-but-multiple-data-points-suggest-bitcoin-is-undervalued\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Further downside is expected, but multiple data points suggest Bitcoin is undervalued &#8220; The outlook across the cryptocurrency ecosystem continue to dim as the sharp downtrend that was initially sparked by the collapse of Terra now appears to have claimed the Singapore-based crypto venture capital firm Three Arrows Capital (3AC) as its next victim.\u00a0&#8230;<\/p>\n","protected":false},"author":1,"featured_media":463905,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvNjgzNWNiNzAtOTY5NS00YWZjLWFjNWEtMGZjNjczYTYzMjg0LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74982,74863,73785],"class_list":["post-463904","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-btc-markets","tag-cryptocurrencies","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/463904","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=463904"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/463904\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/463905"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=463904"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=463904"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=463904"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}