On June 19th, Bitcoin valuation metrics returned to historically significant low levels; however, the pace of price recovery has not accelerated correspondingly.
RadexMarkets notes that Bitwise considers Bitcoin to have entered a "deep value" zone relative to its long-term trend, indicating that its appeal for medium to long-term allocation is increasing.
Nevertheless, a low valuation does not guarantee an immediate return of capital.
RadexMarkets believes that the Federal Reserve's maintenance of a relatively tight stance and the diversion of market liquidity by large financing projects are key factors affecting Bitcoin's recovery pace.
Particularly in a high-interest-rate environment, investors are more inclined to wait for a clearer risk-reward ratio.
Concurrently, financing and listing plans for artificial intelligence-related companies continue to absorb substantial capital, leading to a repricing of available market liquidity.
For Bitcoin, whether its valuation advantage can be realized depends on whether institutional funds are willing to reinstate it as a priority in their allocation strategies.
Looking ahead, RadexMarkets anticipates that Bitcoin will continue to oscillate between the logic of value recovery and liquidity constraints.
Only when a confirmed influx of new capital returns is the low-valuation narrative more likely to translate into sustained price performance.
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