Coinspeaker
Bitcoin Isn’t Cheap Anymore, Says Fidelity Revising Medium-Term Outlook

Recovering from the lows of under $60,000, Bitcoin price gave a good bounce back to above $66,000 during the halving period over the last week. Following nearly 70% gains during the first quarter of 2024, Fidelity Digital Assets has recently revised its medium-term outlook for Bitcoin from “positive” to “neutral”.

The financial noted that the current selling pressure in Bitcoin comes as BTC no longer remains “cheap”. On Monday, April 22, Fidelity Digital Assets published its latest Signals report stating that the Bitcoin Yardstick, or Hashrate Yardstick, works in a similar way to the price-to-earnings ratio in the traditional stock market. Thus, the Hashrate Yardstick helps to understand whether Bitcoin is undervalued.

Fidelity observed that the Yardstick maintained its position between a negative one and zero deviations from the mean of 51% throughout the first quarter. This implies that there were no days in Q1 when Bitcoin was deemed ‘cheap’.

As a result, Fidelity suggests that Bitcoin is currently trading at “fair...