Bitcoin price still in bargain zone as US jobs report sparks rate cut hopes
Bitcoin's mid-term outlook has shifted to an "optimism" zone, indicating undervaluation, as noted by Fidelity Digital Assets. The 'Bitcoin Yardstick' metric shows a lower market cap to hashrate ratio, suggesting Bitcoin is cheaper relative to its network's energy security. In Q1 2025, this metric cooled from overheated levels, with fewer days above 2-standard deviations. Bitcoin is in an "acceleration phase," with potential for new highs but risks of a blow-off top. Illiquid supply increased to 63.49%, while liquid supply fell by 4%. BlackRock's iShares Bitcoin Trust ETF saw significant inflows, totaling $970.9 million on April 28, 2025, and over $4.5 billion since April 22, capturing a 51% market share in US spot Bitcoin ETFs. The March 2025 JOLTS report indicated a cooling labor market, raising expectations for Federal Reserve rate cuts, which could benefit Bitcoin. Market volatility is anticipated in Q3, but Bitcoin's risk-reward profile is expected to outperform altcoins.
