Samson Mow, CEO of Bitcoin technology firm Jan3, contends Bitcoin is currently undervalued compared to gold and the global money supply. He cites a key technical metric suggesting such conditions have historically preceded significant BTC price rallies, offering a contrarian view to analysts forecasting a potential drop toward $50,000.
Samson Mow, the CEO of Bitcoin technology company Jan3, stated that Bitcoin is undervalued relative to traditional assets. “Bitcoin is about 24%-66% below its trend relative to gold’s market cap or global money supply, while gold is overextended,” Mow said in a post on X.
He specifically referenced the Z-score of the Bitcoin-to-gold ratio. A score below zero indicates the price is trading below its historic average.
Mow noted that when this Z-score drops below -2, Bitcoin has experienced major price rallies. The Z-score was approximately -1.24 at the time of his analysis.
Data from TradingView shows the metric fell below -3 in November 2022. Bitcoin’s price then rallied over 150% in the subsequent 12 months.
A similar pattern occurred during the March 2020 market crash. Bitcoin surged over 300% in the following year after the Z-score dropped below -2.
This analysis contrasts with other market forecasts. Several analysts predict more price declines for Bitcoin due to investor uncertainty and geopolitical tensions.
These analysts suggest Bitcoin’s price may be headed toward $50,000. They indicate current price action could mirror the 2022 bear market.
Bitcoin recently fell over 50% from its peak to a low near $60,000. It has since recovered to trade near $66,400.
