Mars Finance reports that according to Cointelegraph, Bitcoin technology company Jan3 CEO Samson Mow stated that Bitcoin is currently undervalued compared to gold and the global money supply, which could signal a price reversal. Mow posted on X that Bitcoin’s market value relative to gold or the global money supply is 24% to 66% below its trend line, while gold is in an overbought state. Mow also referenced the Bitcoin Z-score indicator, which tracks the deviation of BTC price from its historical average. The Z-score of the Bitcoin-to-Gold ratio is currently around -1.24. When this Z-score drops below -2, Bitcoin has previously experienced a “significant” price surge. Data from TradingView shows that during the FTX collapse in November 2022, this indicator fell below -3, and BTC price increased by over 150% within the following 12 months. A similar pattern occurred during the COVID-19 pandemic in March 2020, when the indicator dropped below -2, and Bitcoin surged over 300% in the next 12 months.
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Analyst: Bitcoin is undervalued compared to gold, potentially indicating a upcoming rebound.
Mars Finance reports that according to Cointelegraph, Bitcoin technology company Jan3 CEO Samson Mow stated that Bitcoin is currently undervalued compared to gold and the global money supply, which could signal a price reversal. Mow posted on X that Bitcoin’s market value relative to gold or the global money supply is 24% to 66% below its trend line, while gold is in an overbought state. Mow also referenced the Bitcoin Z-score indicator, which tracks the deviation of BTC price from its historical average. The Z-score of the Bitcoin-to-Gold ratio is currently around -1.24. When this Z-score drops below -2, Bitcoin has previously experienced a “significant” price surge. Data from TradingView shows that during the FTX collapse in November 2022, this indicator fell below -3, and BTC price increased by over 150% within the following 12 months. A similar pattern occurred during the COVID-19 pandemic in March 2020, when the indicator dropped below -2, and Bitcoin surged over 300% in the next 12 months.