Glassnode: Bitcoin valuation reaches historic lows, signaling downward potential is exhausted

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On February 6th, Glassnode announced that the Bitcoin “Yardstick” indicator has hit a record low, far below previous bottoms, indicating that Bitcoin’s price is severely undervalued relative to network security (hash rate). Historical data shows that such extreme lows often signal the convergence of exhausted downside potential and long-term opportunities. Past similar situations have typically led to significant rebounds in Bitcoin’s price. Note: The Bitcoin “Yardstick” indicator, developed by Capriole Investments, is defined as Bitcoin market capitalization divided by hash rate and normalized over 2 years, similar to a price-to-earnings ratio for stocks, used to assess Bitcoin valuation.

BTC2,42%
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