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Prominent on-chain data aggregator CryptoQuant has published a report from of its analysts, saying that the world’s global cryptocurrency, Bitcoin, is approaching a zone where the downside risk is becoming limited for investors.
Meanwhile, Bitcoin has managed to regain the $66,970 zone after adding roughly 2.45% over the past 24 hours.
Bitcoin approaching undervalued zone
The aforementioned data source published a report provided by their analyst, going by the name @DanCoinInvestor on X. The analyst shared a Bitcoin chart, stating that he sees BTC approaching the undervalued zone.
Per the report, currently, the MVRV ratio has reached 1.1. Once it falls below this level, “Bitcoin is regarded as undervalued,” the expert believes. Still, the analyst noted that now there is a big difference from previous similar cases. This time, Bitcoin did not surge sharply into an overvalued zone on the chart during the recent bull cycle. This is an important thing to recognize, he says.
Therefore, the current price drop may also be significantly different from the market bottoms Bitcoin reached in previous years. The conclusion here is that the analyst believes this could be a good entry opportunity for long-term investors: “For most investment assets with a long-term upward trajectory, effective preparation tends to begin during downturns, increasing the likelihood of favorable outcomes.”
Binance completes its $1 billion Bitcoin SAFU transition
The world’s largest cryptocurrency exchange, Binance, has finally completed the conversion of its emergency SAFU fund worth $1 billion from fiat fully into Bitcoin. The last Bitcoin purchase was conducted on Thursday, when Binance acquired and then moved to the SAFU fund 4,545 BTC valued at approximately $309,288,522.
The platform published a report about that, saying that it has fully fulfilled its commitment announced a month ago. It has bought $1 billion worth of Bitcoin, spending between $200 and $300 million on each BTC chunk, which was later moved to SAFU.
Now, Binance’s emergency fund contains 15,000 Bitcoin worth $1,005,000,000. Thus, the platform shows its long-term belief in Bitcoin as a global reserve asset. Should the Bitcoin price crash lower and the value of SAFU drop below $800 million, Binance is committed to adding more funds to it to bring it back to $1 billion.
Vladislav Sopov
Dan Burgin