glassnode: Bitcoin Valuation Reaches All-Time Low, Signaling Exhaustion of Downside Potential

BlockBeats News, February 6th, glassnode issued a statement saying that Bitcoin's "Yardstick" metric hit a historical low, well below previous bottoms, indicating that the Bitcoin price is severely undervalued relative to network security (hash rate).

Historical data shows that such extreme lows often signal the exhaustion of downside potential and a convergence of long-term opportunities, with past similar instances typically seeing a significant rebound in Bitcoin's price.

Note: The Bitcoin "Yardstick" metric, developed by Capriole Investments, is defined as the Bitcoin market capitalization divided by the hash rate and normalized over 2 years of data. Similar to a stock's price-earnings ratio, it is used to assess Bitcoin valuation.