Deutsch
The Bitcoin price has seen mild gains since yesterday, leading to an increase above $88,000. Nevertheless, according to the Fear & Greed Index, the mood continues to decline. According to CoinShares expert Marc des Ligneris, BTC is undervalued at its current price.
Bitvavo, one of the leading exchanges from Europe (Netherlands) with a large selection of cryptocurrencies. PayPal deposit possible. For a limited time only: 10 Euro bonus when you sign up via CoinPro.ch
Bitcoin price rises above $88,000
The Bitcoin price has managed to achieve mild gains over the last 24 hours. In the daily trend, the largest cryptocurrency is up 1.30 percent. BTC is trading at $88,244 after the recent gains.
- Bitcoin
(BTC) - Price $88,180.00
- Market Cap
$1.76 T
The Bitcoin itself remains far behind past highs and disappoints expectations that many experts had fueled over the past months. For example, Standard Chartered’s price analysts and crypto entrepreneur Arthur Hayes had predicted a market value of $250,000 for December.
Bitcoin set its valid all-time high in October at $126,198. Since then, the cryptocurrency has fallen by 30 percent to its current market value. Standard Chartered already adjusted its price forecast in November due to the disappointing low and promised a rise to $200,000 in December, which currently also seems unattainable.
At the time of writing, price gains are shaping the crypto market in the daily trend. Many of the 100 largest cryptos are showing green numbers over the last 24 hours. Even the entire crypto market has been able to rise by 1.40 percent since yesterday.
The daily trend thus paints a clear contrast to the weekly trend, which is still visibly marked by enormous price losses. As a result, the appearance of a recovery is emerging.
The Fear & Greed Index from CoinMarketCap, in turn, paints a different picture. According to him, the mood is currently continuing to decline. Yesterday, he classified the sentiment as fearful with 22 out of 100 points. Since then, the mood has dropped by another point to 21 out of 100 points.
That’s why BTC is currently undervalued
Bitcoin is currently visibly undervalued – this assessment was recently given by Marc des Ligneris, portfolio manager of CoinShares. In doing so, he compares BTC with other asset classes and notes drastically different price developments.
“From a macroeconomic valuation perspective, Bitcoin still appears undervalued,” wrote des Ligneris in a market analysis available to CoinPro.
A sentiment indicator that includes different markets fell slightly in November, but experienced an enormous increase in December. In contrast, Bitcoin did not recover after enormous losses in November. According to des Ligneris, macroeconomic reasons could therefore not justify the low Bitcoin price.
“Macro models that explain Bitcoin’s price performance based on key macroeconomic factors show a sharp increase in residuals. This suggests that the current weakness is not related to the macroeconomic environment,” he wrote.
The expert recognizes sales by long-term Bitcoin holders as a central background. Those would have shocked the market.
“The Crypto Fear & Greed Index has been consistently in the fear or extreme fear range since the beginning of November – an unusually long period,” writes the portfolio manager. “The trigger was a pronounced wave of selling on the part of long-term Bitcoin holders, which had a noticeable and lasting impact on the overall psychology of the market,” he further explains.
The upside potential is now limited, as 60 percent of short-term holders are in the red and will use the earliest possible moment to sell their coins profitably.
“Seasonally weak liquidity at the end of the year as well as a significant weakening of ETF inflows have additionally contributed to erratic and volatile price movements,” explains des Ligneris.
Noticeable increases in long positions on Bitfinex could, however, indicate a soon recovery. These often precede strong price gains, writes the expert.
Buy Bitcoin now!
