Bitcoin (BTC) experienced significant price weaknesses over the weekend following the release of August nonfarm payrolls (NFP) data, which fell below analysts\u2019 expectations.<\/p>\n
Following the release of the NFP data, BTC saw a sharp decline of nearly 5% to trade below the $54,000 range, marking its lowest level since early August. Amid this price volatility, the crypto market liquidated $200 million in long positions. This price weakness also rubbed off on the broader crypto market, with the overall meme coin and AI sector sectors dropping 6% and 7%, respectively.<\/p>\n
Amidst this price weakness<\/a> fueled by macroeconomic factors, analysts at Presto Research highlighted the market\u2019s apparent undervaluation of bitcoin. The analysts Peter Chung and Min Jung believe the current market price of the pioneering cryptocurrency is \u201cgrossly undervalued,\u201d citing one key underlying value: \u201cnetwork security.\u201d<\/p>\n In a report<\/a> on September 9, they pointed out discrepancies between the price of BTC and its underlying value. While the former, which investors are currently focused on, is volatile and short-term, the value, on the other hand, is \u201crelatively stable\u201d and changes slowly.<\/p>\n Per recent data, Bitcoin\u2019s hashrate reached an all-time high (ATH) of 679 EH\/s. While this suggests that the network is more secure than ever, the analysts stated that the market seems to be undervaluing this fundamental aspect of the asset as evidenced by the pricing (measured by the hash price) of this security\u2014which is at a historic low.<\/p>\n \u201cAmid macro factors dominating BTC price talk lately, the market is overlooking one of the key fundamentals underpinning Bitcoin\u2019s value \u2013 network security. The hashrate, the computational power that secures the network, has hit an all-time high of 679 EH\/s, making it the most secure network by far on the planet. Yet, the market is oblivious to this, as shown by the all-time low hash price of $39.01\/PH\/s\/day,\u201d they said in the report.<\/p>\n The analyst concluded that while short-term price weaknesses are inevitable, investors should focus more on BTC\u2019s long-term value, which is underpinned by the network\u2019s security and the growing acceptance of the asset as \u201cdigital gold.\u201d<\/p>\n \u201cThe world has spent the last 15 years slowly but surely embracing the concept of \u2018digital gold\u2019; if you believe that trend will continue (in fact, the availability of spot ETF means we are in a much better setup than ever before), BTC seems grossly undervalued at the moment,\u201d they said.<\/p>\n Bitcoin trades above $55,000 at press time, marking a less than 2% surge on the day. The digital asset is expected to see further price volatility following the upcoming release<\/a> of Consumer Price Index (CPI) data on Wednesday and Producer Price Index (PPI) data on Thursday.<\/p>\n The post Analysts Say Bitcoin Is \u2018Grossly Undervalued\u2019 Considering This Underlying Value\u00a0<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin (BTC) experienced significant price weaknesses over the weekend following the release of August nonfarm payrolls (NFP) data, which fell below analysts\u2019 expectations. Following the release of the NFP data, BTC saw a sharp decline of nearly 5% to trade below the $54,000 range, marking its lowest level since early August. Amid this price volatility, […]<\/p>\n","protected":false},"author":0,"featured_media":4924,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/4923"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4923"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/4923\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/4924"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Long-Term Value<\/h2>\n