Bitcoin is a popular cryptocurrency among crypto-investors.BTCAccording to the latest Global Investor Survey by Coinbase and Glassnode, ) has been undervalued.
According to the survey, 82% institutions and 70% non-institutions consider that BTC market is in late bear cycle phase of markdown. Onchain indicators also suggest BTC entering a “value-accumulation zone.”
Bitcoin remains in its late bear phase due to persistent undervaluation
Coinbase Institutional Research surveyed The 91 global investor between 16 March and 7 April, including 29 institutional investors and 62 other non-institutions. These responses reveal a dramatic shift in the perception of BTC.
Around 82% institutions and 70% non-institutions classify the current market in a “late bear” or “markdown phase”, up from about one third last December.
Bitcoin investor survey data. Source: Coinbase
Nevertheless, valuations remained constant. Around 75% institutions and 61% individuals believe Bitcoin to be undervalued. A small percentage of people deemed it to be overpriced.
In addition, the survey noted that expectations about Bitcoin’s dominance had changed. Institutions’ expectations of dominance increasing dropped from 40% to 25%. About 54% of respondents now believe it will remain at its current level, which is 58.1%. Meanwhile, 21% predict a decrease.
Related: Bitcoin, stocks risk ‘months’ of losses as Kevin Warsh Becomes Fed chair
Onchain signals flag value zone for Bitcoin
Onchain data echoes the Bitcoin valuation. Woominkyu, a crypto analyst, created the Bitcoin Combined Market Index, or BCMI, which aggregates investor sentiment, MVRV and NUPL into a single number. Recently, the index jumped from 0.26 to 0.37. This level has historically been associated with periods of deep undervaluation.
Bitcoin Combined Market Index. Source: CryptoQuant
MVRV measures the difference between market and realized values, while NUPL is a measure of net unrealized profits or losses across all holders. The SOPR is a measure of whether or not coins have been sold at a net profit. The indicators are combined to provide a comprehensive view of both investor and pricing behavior.
However, the BCMI 90-day moving average is continuing to decline. Woominkyu’s stock price rose by a little over 5% earlier in the month. said,
“We are entering a “Value-Accumulation Zone.” The data suggests the downside is becoming limited compared to the long-term upside.”
Context is provided by the short-term holders’ activity. Age bands of holders from one week to one month. fell to 3.91%This is the same as October 2023 when BTC was trading at around $27,000. This metric measures the number of coins recently exchanged, which is a good proxy for liquidity in short term and speculation on price.
Bitcoin cycle lows are formed between three and six months following similar readings, dating back to 2021. Crypto Dan, Market Analyst noted The indicator showed a significant drop in the BTC price during March. However, it did not confirm if the BTC has reached a new low.
Bitcoin age bands: UTXO (1 week to 1 months). Source: CryptoQuant
Related: Bitcoin’s recent rally is largely fueled by Strategy purchases: Bitwise’s Hougan
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Source: cointelegraph.com
