Bitcoin Deemed Undervalued by Analysts Due to Explosive Hashrate Growth and Strong Network Security
Analysts from Presto Research assert that Bitcoin (BTC) is significantly undervalued, with the increasing network security and growing acceptance of BTC as ’digital gold’ being critical factors. Despite recent market fluctuations, including a nearly 5% drop following the August nonfarm payrolls data release, Bitcoin’s hashrate has reached an all-time high of 679 EH/s. Traders anticipate further price volatility with upcoming CPI and PPI data releases. The recent weaker US payroll data also triggered a sell-off, liquidating over $220 million in long BTC positions. Analysts Peter Chung and Min Jung recommend that investors focus on Bitcoin’s long-term potential, driven by its strong network security indicated by its rising hashrate.
Neutral
While Bitcoin’s rising hashrate and strong network security indicate long-term growth potential, the recent market fluctuations and the anticipated price volatility due to upcoming economic data releases suggest a balanced outlook. Traders should remain cautious in the short term but can consider the robust network security as a positive indicator for long-term investment.