Bitcoin's relative liquidity rise lags by 66%, institutions claim fair value is $270,000.

Source: TokenPost Original Title: Bitcoin, despite global liquidity expansion, is undervalued by 66%… “Fair value at $270,000” Original Link:

Bitcoin Value Analysis

The cryptocurrency investment firm Bitwise recently released a report indicating that Bitcoin's current price is lagging behind the growth rate of the global money supply by 66%. According to this model, Bitcoin's fair value should reach $270,000 (approximately 39.69 million), but the current market price is far below this level. In contrast, gold has a premium of 75% relative to the global M2 (broad money supply), reaching an all-time high and absorbing liquidity within the asset market.

Background of Liquidity Expansion

The report specifically points out several key factors indicating that we are currently entering a phase of liquidity expansion:

• The Federal Reserve ended its quantitative tightening (QT) policy on December 1.
• The United States is issuing annual government bonds worth up to $1.9 trillion.
• New economic stimulus measures are ready to distribute 2000 dollars in cash to the public.

However, Bitcoin has yet to respond to this trend of increasing liquidity.

Investment Opportunity Analysis

Bitwise emphasizes that although structural conditions are favorable, the current situation where Bitcoin is undervalued presents an opportunity for medium to long-term investors. From a medium to long-term perspective, Bitcoin may regain its status as a store of value relative to gold.

Market Outlook

Against the backdrop of an abnormal divergence between traditional markets and the cryptocurrency market, it is worth noting when the market will reflect this difference in prices. The current undervalued state may indicate the potential for a significant rebound, and if the undervaluation relative to gold persists, investment demand may quickly recover.

Key Terminology Explanation

• M2: Broad money indicator including cash and short-term deposits.
• Quantitative Tightening (QT): A monetary policy by central banks to withdraw market liquidity.
• Asymmetric Opportunities: Investment environment with potentially high returns relative to risks.