RATE Group | This Metric Shows Bitcoin Is Undervalued Even After 150% Price Rally
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This Metric Shows Bitcoin Is Undervalued Even After 150% Price Rally

20 May This Metric Shows Bitcoin Is Undervalued Even After 150% Price Rally

Posted at 01:32h in Cryptocurrency News by

Bitcoin has witnessed triple-digit percentage gains over the past two months. Yet, one metric has turned quite bullish after the recent halving event, showing signs the cryptocurrency remains undervalued and still has room to run. 

The largest cryptocurrency by market capitalization is trading near $9,700 at press time, up 150% from its March 12 low of $3,867.

And while that may cause some investors to think the cryptocurrency is overbought or overvalued, an on-chain metric called the “Puell Multiple”, which marked a price bottom in March, is suggesting otherwise. 

The Puell Multiple is calculated by dividing the daily issuance value of bitcoins in U.S. dollar terms by the 365-day moving average of the daily issuance value. It is currently just below 0.5, according to the data provided by the blockchain intelligence firm Glassnode.

puell-multiple-2020
Puell Multiple 2020
Source: Glassnode

A reading below 0.5 indicates the value of the newly issued coins on a daily basis is quite low compared to…

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