Bitcoin's valuation has reached an all-time low, signaling that downside potential has been exhausted.

According to ME News, on February 6th (UTC+8), Glassnode reported that the Bitcoin Yardstick indicator hit an all-time low, significantly lower than previous bottoms, indicating that Bitcoin's price is severely undervalued relative to network security (hash rate). Historical data shows that such extreme lows often signal the exhaustion of downside potential and the convergence of long-term opportunities, with Bitcoin prices typically experiencing significant rebounds after similar events in the past. Note: The Bitcoin Yardstick indicator, developed by Capriole Investments, is defined as Bitcoin's market capitalization divided by its hash rate and normalized to 2 years of data, similar to the price-to-earnings ratio for stocks, used to assess Bitcoin's valuation. (Source: ME)