Crypto Enters Undervalued Zone as $200 Billion Big Tech Fundraising Threatens Liquidity

The cryptocurrency market has entered an undervalued zone, but tighter macro conditions and stalled new liquidity are creating both upside and downside pressure, according to a new analysis.

In a report dated June 19, crypto asset manager Bitmine said indicators used to gauge the market’s valuation are pointing to a bottoming range. Historically, that has coincided with periods of accumulation by long-term investors. Compared with artificial intelligence-related technology stocks such as Nvidia, which the report said are trading above their long-term trend lines, cryptocurrencies offer more attractive valuations.

The broader liquidity backdrop remains weak. CryptoQuant, an on-chain data analytics firm, said the cryptocurrency market’s realized market capitalization growth rate has continued to stabilize lower after entering a bearish regime on Oct. 30 last year. The indicator’s seven-day and 59-day moving averages fell to 13.9 and 19.1, respectively, as of June, from about 70 in the fourth quarter of last year. That suggests momentum in new money flowing into the network has weakened sharply.

A pipeline of large fundraising deals in traditional finance is also weighing on crypto liquidity. Silicon Valley technology companies including SpaceX, Anthropic and OpenAI are preparing to raise a combined $200 billion. If those deals move ahead in earnest, they could act as a black hole absorbing liquidity across risk-asset markets, the analysis said.