Grayscale: On-chain metrics indicate that Bitcoin is currently undervalued, but has not yet hit its historical cycle bottom.

According to Mars Finance, Zach Pandl, Head of Research at Grayscale, stated that on-chain valuation metrics indicate Bitcoin is currently undervalued, but not as cheap as it was at the bottom of previous cycles. He believes this bear market may be shallower than previous ones due to the smaller gains in the previous bull market, coupled with improvements in market structure such as ETP availability, wealth platform deployment, and institutional adoption. Zach believes investors should focus on two short-term catalysts: the progress of the Senate's Clarity Act and whether leveraged Bitcoin holders can stabilize their balance sheets. He remains optimistic about the Clarity Act, but market predictions suggest its passage is unlikely. Pandl believes the current price level offers long-term investors an opportunity to build positions in stages, while short-term traders may want to wait for the bill's progress.