Why Bitcoin Looks Cheaper Today Than in 2017, According to Data

• BTC vs gold hits extreme undervaluation, echoing 2015 levels before a multi-year rebound.
• Bitcoin is trading at levels that data suggests are more attractive than in 2017. Analysts compare Bitcoin’s value to gold and see signs of deep relative weakness.
• Similar conditions appeared near earlier long-term market bottoms.

Bitcoin is trading at levels that data suggests are more attractive than in 2017. Analysts compare Bitcoin’s value to gold and see signs of deep relative weakness. Similar conditions appeared near earlier long-term market bottoms.

Bitcoin Reaches Record Low Versus Gold

Bitcoin’s value compared to gold fell to its lowest recorded level in January. This reading adjusts for changes in global money supply. Data from Bitwise Europe showed the BTC-to-gold ratio entering an extreme zone.

The ratio moved near the negative two levels on the Z-score scale. This zone appeared during periods when Bitcoin was deeply undervalued. Similar readings were last seen in 2015, before a multi-year Bitcoin recovery.

Analyst Michaël van de Poppe stated, “Today represents a better opportunity to be buying Bitcoin than 2017.” 

His comment followed the release of the data. Other analysts also referenced historical comparisons with past cycles.

Analysts Watch for Possible Rotation From Gold

Gold prices have doubled over the past year, while Bitcoin declined during the same period. This divergence led some traders to consider a shift from gold to Bitcoin. Analysts say such rotations depend on market conditions and timing.

André Dragosch of Bitwise Europe noted that Bitcoin often gains attention after periods of relative weakness. Pav Hundal of Swyftx said capital rotation could begin in February or March. However, he also noted that rotations do not follow fixed schedules.

Other analysts urged caution. Benjamin Cowen said Bitcoin may continue to weaken against broader markets. He added that a rapid move out of gold into Bitcoin may not occur soon.

Long-Term Holders Show Early Accumulation Signs

On-chain data shows long-term Bitcoin holders increasing supply during January’s decline. These holders are entities that keep Bitcoin for more than 155 days. Their behavior often reflects reduced selling pressure.

Data from CheckOnChain showed a recovery in long-term holder supply. At the same time, the Long-Term Holder Spent Binary indicator continued to fall. This suggests fewer coins are moving to exchanges.

Similar patterns appeared after earlier market lows. In past cycles, accumulation by long-term holders occurred before price recoveries. Analysts note that price reactions usually follow shifts in market behavior.

This structure supports the view that Bitcoin looks cheaper today than in 2017, according to data. Analysts continue to monitor relative value metrics and on-chain trends. Markets remain sensitive to macro factors and investor sentiment.

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