ChainCatcher report, according to Cointelegraph, Samson Mow, CEO of Bitcoin technology company Jan3, stated that Bitcoin is currently undervalued relative to gold and global money supply, which may signal a price reversal. Mow posted on X that Bitcoin is trading 24% to 66% below its trend line compared to gold’s market capitalization or global money supply, while gold is in an overbought state. Mow also cited the Bitcoin Z-score indicator, which tracks deviations of BTC’s price from its historical average. The current Z-score for the Bitcoin-to-gold ratio is approximately -1.24. Historically, Bitcoin has experienced “significant” price increases when this Z-score fell below -2. TradingView data shows that during the FTX collapse in November 2022, the indicator dropped below -3, followed by a more than 150% increase in BTC price over the subsequent 12 months. A similar pattern occurred in March 2020 during the COVID-19 pandemic, when the indicator fell below -2, leading to a more than 300% surge in Bitcoin over the following year.
Bitcoin analyst suggests undervaluation compared to gold, signaling potential price reversal.
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Summary
According to Samson Mow of Jan3, Bitcoin’s price today remains undervalued relative to gold and the global money supply. He noted that Bitcoin’s market cap is 24% to 66% below its historical trendline, suggesting a potential reversal. The Bitcoin Z-score is currently at -1.24, and historical data shows that significant BTC price increases have often followed similar declines. In both 2020 and 2022, major price surges occurred after Z-scores fell below -2.
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