Bitcoin’s recent decline below $60,000 has prompted analysis from major firms on whether the asset is undervalued. According to Grayscale Research, on-chain metrics suggest Bitcoin is currently cheap, though conditions are not as extreme as the post-FTX collapse. The firm points to a stronger market structure and two key short-term catalysts while noting lingering capitulation risks identified by other analysts.
Bitcoin’s drop to a new cycle low briefly below $60,000 has raised questions about the asset’s valuation. Grayscale Research stated the asset appears undervalued based on on-chain metrics, though current conditions are not as extreme as past bear market bottoms.
The firm highlighted that the crypto market is now stronger than in previous cycles due to wider ETF access and increased institutional participation. It said this could make the current downturn less severe than earlier bear markets.
Investors should watch progress surrounding the CLARITY Act in the U.S. Senate and whether leveraged Bitcoin holders can stabilize their balance sheets. “Despite the uncertainty around whether Bitcoin has already found its bottom, the firm believes current price levels present a buying opportunity for investors with long-term horizons,” the report noted.
Separately, Fidelity Digital Assets said Bitcoin has remained in a “death cross” for over 200 days. The price briefly slipped below its 200-week moving average, which in the past has coincided with forced selling events.
Meanwhile, analytics firm Swissblock said Bitcoin’s Risk Index and spot ETF net flows show signals of whether the market is stabilizing. It warned the asset remains under structural pressure as long as the Risk Index stays within “Capitulation Risk.”
