Key Takeaways:
Fidelity Digital Assets says Bitcoin is undervalued and the firm holds an optimistic mid-term outlook.
The JOLTS report shows a sharp drop in open US jobs, raising investors’ hope for Fed interest rate cuts.
According to Fidelity Digital Assets, Bitcoin’s (BTC) mid-term outlook dropped to an “optimism” zone, as the investment firm noted that BTC is trending toward “undervaluation.”
As proof, the firm cited the ‘Bitcoin Yardstick’ metric, which measures BTC’s market cap divided by its hashrate. A lower ratio suggests that Bitcoin is “cheaper” relative to the energy security of its network.
In Q1 2025, the metric stayed between -1 and 3 standard deviations, cooling from its Q4 2024 overheated levels. The number of days above 2-standard deviations dropped from 22 to 15, with none above 3, indicating that Bitcoin is less expensive compared to its network strength.