Fidelity "Bitcoin, Entering Accumulation Amid Undervaluation"

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An analysis has emerged that Bitcoin (BTC) has entered an accumulation phase, remaining in an undervalued territory from a long-term perspective, with large-scale accumulation underway.

According to crypto-specialized media NewsBTC on April 30 (local time), global asset management firm Fidelity Digital Assets stated in its latest report that Bitcoin is currently situated at an attractive price point based on market indicators.

Jack Wainwright, an analyst at Fidelity Digital Assets, diagnosed that Bitcoin is trading below its fair value, citing the Market Value to Realized Value (MVRV) Z-score. The MVRV Z-score is an indicator that measures the difference between an asset's market capitalization and its realized capitalization to assess the degree of market overheating or undervaluation. The current figure is below its historical average, suggesting it could be a strategic buying zone for long-term investors.

The market realized slope indicator, which reflects the speed of capital inflow into the market, also suggests that the strength of selling pressure is weakening. Wainwright analyzed that although Bitcoin underwent price correction during the last quarter, institutional investor demand has actually strengthened. Large institutions appear to be leveraging the current period of price stagnation as an opportunity for asset accumulation, undeterred by short-term volatility.

The report emphasized that Bitcoin maintains robust fundamentals in terms of network activity and actual transaction value. The current price being lower than the intrinsic value suggested by on-chain data is expected to serve as a springboard for a strong rebound in the future. Market experts are paying attention to the possibility of new price upward momentum emerging as this undervalued phase resolves.

Fidelity predicted that Bitcoin's asset value would be gradually recognized and its weight in portfolios would expand, even amidst macroeconomic uncertainties. This report suggests that Bitcoin's market structure has qualitatively improved compared to past bear markets, supporting a long-term bullish outlook.

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