Analyst: Bitcoin is undervalued compared to gold, which may indicate a potential rebound
According to Cointelegraph, Jan3 CEO Samson Mow stated that Bitcoin is currently undervalued compared to gold and the global money supply, which may indicate a price reversal.
Mow posted on the X platform that Bitcoin's market value relative to gold or the global money supply is below its trend line by 24% to 66%, while gold is in an overbought state. Mow also cited the Bitcoin Z-score metric, which tracks the deviation of BTC price from its historical average. The Z-score of the Bitcoin-to-gold ratio is currently around -1.24. When this ratio's Z-score falls below -2, Bitcoin has previously experienced "significant" price increases.
TradingView data shows that during the FTX collapse in November 2022, this metric fell below -3, and subsequently, BTC price rose over 150% within the next 12 months. A similar pattern occurred in March 2020 during the COVID-19 pandemic, where the metric fell below -2, and Bitcoin surged over 300% in the following 12 months.
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