Grayscale Research Director: Bitcoin is currently in a severely undervalued zone but has not reached the lows of past bear market cycles

On June 9th, Grayscale Investment Research Director Zach Pandl released a research report stating that as Bitcoin's price fell below $60k and hit a new low for this cycle, market participants are paying close attention to whether Bitcoin has entered a bottoming zone.

Although on-chain comprehensive valuation indicators show that Bitcoin is indeed undervalued at present, it has not reached the extreme lows seen in previous bear market cycles (such as after the FTX collapse).

The report believes that the current bear market decline may be smaller than historical levels, due to the relatively moderate gains in the previous bull market, as well as improvements in market structure such as the availability of ETPs, deployment on wealth platforms, and institutional adoption.

Looking ahead, Grayscale recommends investors focus on two key short-term catalysts: first, the progress of the "CLARITY Act" in the Senate (market prediction results are unpredictable), and second, whether leveraged Bitcoin holders can stabilize their balance sheets.

Grayscale summarized that on-chain indicators show Bitcoin's price has fallen below the long-term average, making it suitable for long-term investors to dollar-cost average in stages; short-term traders can wait until the "CLARITY Act" is enacted and clear signals are released before taking action.

#When will Bitcoin bottom out