Last updated:
Author
Arslan Butt
Author
Arslan Butt
Share
Why Trust Cryptonews
Bitcoin (BTC), the leading cryptocurrency in the world, extended its upward rally and attracted further bids around the $59,497 level, reaching an intra-day high of $59,795.
Several factors contributed to this upward trend, including positive inflows into US spot Bitcoin Exchange-Traded Funds (ETFs).
Furthermore, Arthur Hayes’ prediction of a Bitcoin surge to $1 million has also boosted BTC’s price.
Moreover, a Bitcoin valuation indicator is flashing red, suggesting a potential buying opportunity. Analysts believe Bitcoin remains undervalued compared to historical data.
However, some experts recommend waiting for further declines before investing to maximize potential gains.
According to the latest report, a key Bitcoin valuation indicator, the Mayer Multiple, is signalling a potential buying opportunity. It currently shows that Bitcoin’s price has dropped to levels not seen since the FTX exchange collapse in late 2022.
The Mayer Multiple compares Bitcoin’s current price to its 200-day moving average, with a value below 2.4 considered a buying zone. As of August 5, the Mayer Multiple was at 0.88, indicating that despite recent price increases, Bitcoin is still undervalued according to historical data.
Analysts from the Blockchain data platform Glassnode and the Bitcoin analytics firm BitBo suggest that the cryptocurrency remains undervalued, with the Mayer Multiple typically being 70% higher since Bitcoin’s inception.
However, some experts, including Markus Thielen from 10x Research, advise waiting for further short-term declines, potentially below $40,000, before investing to better time the next bull market entry.
Therefore, the current signal from the Mayer Multiple, indicating Bitcoin’s undervaluation, could lead to increased buying interest, potentially stabilizing or boosting BTC prices.
However, expert caution regarding further declines may cause short-term volatility before a stronger recovery.
On the other side, Arthur Hayes, co-founder and former CEO of Bitmex, predicts that Bitcoin could reach unprecedented heights, potentially hitting hundreds of thousands or even $1 million, under the economic policies of either a Trump or Harris administration.
Hayes argues that both leaders would likely engage in significant money printing to support their economic agendas, leading to a surge in cryptocurrency prices.
He believes that the increased money supply and potential financial disruptions would create a favorable environment for digital assets like Bitcoin.
Hayes also highlights that regardless of which administration is in power, aggressive monetary policies could drive up demand for cryptocurrencies as a hedge against economic instability.
His forecast reflects a broader trend among experts who see Bitcoin benefiting from expansive monetary strategies and becoming a key store of value in the future.
Hayes’ prediction of Bitcoin reaching up to $1 million under aggressive monetary policies suggests a significant price surge. Increased money supply and financial disruptions could boost Bitcoin’s value substantially.
Moreover, US spot Bitcoin ETFs saw a significant rebound on Wednesday, with $45.14 million in net inflows after previous outflows. BlackRock’s IBIT led this surge with $52.52 million, followed by WisdomTree’s BTCW, which received $10.5 million, its largest inflow to date.
Grayscale’s Bitcoin Mini Trust and Bitwise’s BITB also added $9.71 million and $3 million, respectively.
In contrast, Ethereum ETFs faced net outflows of $23.68 million, primarily driven by Grayscale’s ETHE, which lost $31.86 million. Despite this, Fidelity’s FETH had a slight inflow of $4.7 million. The total trading volume for Bitcoin ETFs was $1.79 billion, while Ethereum ETFs saw $322.85 million in trading.
Since their inception, Bitcoin ETFs have accumulated $17.23 billion in net inflows, while Ethereum ETFs have experienced $387.35 million in net outflows.
Therefore, the $45 million inflow into Bitcoin ETFs suggests growing investor confidence, which could drive up Bitcoin’s price. Conversely, the outflows from Ethereum ETFs may pressure Ethereum’s price downward.
Bitcoin Bullish Above $60,000 as BTC Crosses Key Technical Levels
Bitcoin (BTC/USD) is currently trading at $61,300, showing signs of strong bullish momentum. The price has successfully crossed above the 50-day Exponential Moving Average (EMA) at $59,300, a key indicator of a positive trend.
Additionally, a bullish engulfing candle further supports the ongoing buying pressure, suggesting that the market sentiment is leaning towards further gains.
However, it’s important to note that the Relative Strength Index (RSI) has reached 63.6, indicating that Bitcoin is approaching overbought conditions. This could potentially lead to a bearish correction if the buying momentum begins to wane.
For now, Bitcoin remains bullish above the $60,000 level, but traders should be cautious of a possible pullback due to the elevated RSI levels.
You might also like
Why Pepe Unchained ($PEPU) Is a Strong Addition to Your Crypto Portfolio
Meme coins are on the rise, and $PEPU, a promising newcomer, offers the potential for substantial gains.
Presale Advantage: Investing in $PEPU during its presale could lead to significant returns, according to crypto experts like Jacob Crypto Bury.
Passive Income Opportunity: The 499% APY staking feature presents an attractive opportunity for generating passive income.
Investor Confidence: With 321 million $PEPU tokens already staked, there is strong investor confidence in the project’s long-term prospects.
Don’t Miss Out on the Pepe Unchained Presale
Secure Investment: Pepe Unchained’s smart contract has been thoroughly audited by Coinsult and SolidProof.
Easy Purchase Options: You can buy $PEPU using ETH, USDT, BNB, or a credit card.
Take Action Now: Don’t miss this opportunity to potentially grow your wealth significantly!
This sentiment is echoed by popular crypto YouTuber Jacob Crypto Bury, who anticipates strong growth for meme coins this year and highlights the benefits of investing in presales like Pepe Unchained.
Buy $PEPU Presale Now
The presale is nearing its next price increase, with $7,218,370 raised out of the $7,341,742 goal. Currently, 1 $PEPU is priced at $0.008875. Secure your investment before the price goes up!
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
