Bitwise "Bitcoin (BTC) undervalued despite global liquidity expansion… fair value $270,000"

An analysis has found that Bitcoin (BTC) remains significantly undervalued relative to the money supply despite entering a phase of global liquidity expansion. Bitwise presented a fair value of $270,000 and assessed that gold is about 75% overvalued.

On the 2nd (local time), crypto-focused media Cointelegraph reported that Bitwise said in its monthly report that global liquidity is increasing again as the United States' annual Treasury issuance of $1.9 trillion, a $2,000 cash payment plan, and the Federal Reserve's (Fed) end of quantitative tightening (QT) coincide.

Bitwise explained that with Japan's $110 billion and China's $1.4 trillion fiscal stimulus, plus Canada's resumption of quantitative easing (QE), there have been more than 320 interest-rate cuts worldwide. Against this backdrop, global M2 hit a record high of $137 trillion, but Bitcoin is trading at about 66% below the money supply, it said.

Bitwise also presented a fair value for Bitcoin of $270,000 based on a liquidity model. By contrast, it also said that gold appears to be about 75% overvalued by the same model.

Bitwise added that in an environment where monetary policy shifts and fiscal expansion occur simultaneously, liquidity indicators could have an increased impact on risk-asset prices. Accordingly, the market is paying attention to how future liquidity flows will be reflected in Bitcoin prices.