BlockBeats news, on June 10, according to the latest report "Is Bitcoin Cheap Yet?" released by Zach Pandl, Head of Research at Grayscale Research, as Bitcoin's price fell below $60,000 and reached a new low for this cycle, a comprehensive analysis of multiple on-chain valuation metrics indicates that Bitcoin is currently undervalued; however, its valuation attractiveness remains weaker than at previous market cycle bottoms, such as following the FTX collapse.
The report indicates that a composite valuation model composed of three leading indicators—NUPL (Net Unrealized Profit/Loss), Price/CVDD, and Market Cap/Thermo Cap—shows that Bitcoin’s price is now significantly below its long-term average. However, Grayscale believes this bear market decline may be shallower than previous cycles, due to factors such as a relatively modest bull market rally and improved market structure driven by the introduction of spot ETFs, increased allocation by wealth management platforms, and higher institutional adoption.
Regarding future market trends, Grayscale believes investors should focus on two key short-term catalysts: the progress of the U.S. CLARITY Act in the Senate, and whether highly leveraged Bitcoin holders can stabilize their balance sheets. The report notes that institutions remain optimistic about the eventual passage of the CLARITY Act, but current market pricing suggests significant uncertainty remains. The current price level presents an opportunity for long-term investors to employ dollar-cost averaging (DCA), while shorter-term traders may wish to wait for further clarity on developments surrounding the CLARITY Act before making decisions.