BTC
📉 Bitcoin experienced a significant 17% drop in March, partly due to unmet expectations regarding the US crypto reserve adoption method.
📊 Despite the drop, the stock-to-flow model suggests Bitcoin might still be significantly undervalued compared to its projected mathematical price.
📈 Regulatory developments, like Japan classifying crypto as financial products, could bring maturity and attract more serious capital, potentially supporting future price trends despite recent volatility.
@ElClubDeInversion:
“Let’s move from the quintessential safe-haven asset to the most volatile asset in the market, which are, of course, cryptocurrencies. Let’s look at Bitcoin here. We see in this wick for the month of March, we see how March saw sharp drops of around 17%. Again, this was something that, well, had been brewing. Why? Well, for several reasons. First, because we had already seen a strong increase in November and also in January, driven first by Trump’s election and then Trump’s inauguration, but the market needed to take a breather. And on the other hand, also because on March 6th, the United States decided to adopt that Federal reserve of crypto assets, but it didn’t do it in the expected way. It was thought that the United States would buy Bitcoin, but it hasn’t done so. That reserve will be constituted based on seizures taking place at US borders and also, well, within the country for criminal acts, and those seized coins will enter that Federal reserve. So, well, since this reserve hasn’t been established as expected, the market reacted negatively to it. But that doesn’t mean we can’t see an upward trend still in the coming months and quarters, because if we look at other indicators, like for example the stock-to-flow model I’ve talked about many times, we see that here, compared to the mathematical model, Bitcoin is far below what the projected price by the model would be. Obviously, it’s a mathematical model that doesn’t hold absolute science or truth, but we see that at other market times, the price has followed, in the long term, okay, not in the short term, that trend. So there have been times when the price was above the model’s prediction, others when it was below, but generally, it has followed that trend. And we see now, well, that we are below what the model’s price projection might be. A model that currently, well, predicts Bitcoin should be at $324,056 per Bitcoin, while we are at a much, much lower point, around $82,500. Therefore, based on this model, there would be a lot of room here, and this would mean that Bitcoin is undervalued. Okay? So the important thing is that you understand the fundamentals of the asset, understand the market phase we are in, and with that, if you are interested, you can make an informed decision about this investment.”
Watch the exact part of the video where ElClubDeInversion talks about Bitcoin here:
Watch the video on YouTube
Read more articles analyzing Bitcoin (BTC) at the following link. BTC stock.
