- According to Grayscale’s latest research report, on-chain metrics show: $BTC is trading below its long-term average of $60,000.
- What this indicator tells us is that $BTC It’s cheap, but it’s not as much as the previous cyclical low During past crashes like the 2022 FTX bear market.
- The company said challenges include ongoing regulatory developments centered on the CLARITY Act and leverage stability. $BTC holder.
On June 9th, Grayscale shared a report on Bitcoin’s current price movement amidst a bearish mood across the crypto market.
Grayscale research shows this bear market is shallower than previous cycles
According to Grayscale research, on-chain data suggests that Bitcoin is currently trading below its long-term average and appears to be undervalued. However, the company said that Bitcoin prices are not as low as they were during past bear market cycles during the 2022 FTX collapse.
“On-chain indicators suggest Bitcoin is undervalued, but not as cheap as previous cycle lows. Whether we have found a market bottom will depend on upcoming catalysts and CLARITY methodology, but we believe this is a buying opportunity for investors with a long-term view,” the study said.
To conduct this study, Grayscale used composite on-chain metrics. This is an average of many common metrics. According to this indicator, Bitcoin is selling at a discount compared to the previous norm. However, the company revealed that the current bear market is moderate compared to previous cycles.
“We believe this bear market is likely to be shallower than in the past, given the more subdued previous bull market and improvements in market structure due to the availability of ETPs, wealth platform deployments, and other types of institutional adoption,” the study states.
The report says investors are currently focused on regulatory trends surrounding the digital asset sector and how they can be leveraged. $BTC Holders are performing in the short term. Grayscale mentions two factors behind it $BTCThis is the price movement on the short-term chart.
The first is the progress of the Digital Asset Market Transparency Act (CLARITY) in the Senate. In May, the Senate Banking Committee approved the CLARITY Act after long delays in the process.
Sen. Cynthia Lummis said in a post about X:I have spent years building towards this moment. The Transparency Act is the most important financial law in a generation, and we intend to make it happen. ”
The main factor investors should look at is whether leveraged Bitcoin holders are able to stabilize their balance sheets.
“We believe current price levels provide an opportunity for investors with a long-term investment horizon to consider dollar-cost averaging when purchasing Bitcoin. “More tactical traders may want to consider waiting for CLARITY,” Grayscale researchers said.
Bitcoin struggles to recover amid large-scale ETF outflows
According to CoinMarketCap, $BTC It has fallen 21% in the past 30 days and is currently trading at around $61,901.
This financial turmoil created intense selling pressure on the cryptocurrency market as investors began withdrawing their funds. Bitcoin exchange-traded funds (ETFs) like the BlackRock ETF witnessed the longest streak of outflows in history, lasting 13 days. In total, investors withdrew investments worth approximately $4.4 billion.
flat $BTC ETFs are still witnessing massive outflows. June 5th, $BTC According to Pharcyde, the ETF recorded outflows of approximately $325.7 million. On June 8, an outflow of approximately $91.4 million was confirmed. This indicates that institutional investors’ confidence in the cryptocurrency market is declining during periods of high volatility.
