Bitwise: BTC is undervalued with bad news priced in

Bitcoin is showing more strength than traditional assets like gold and U.S. stocks amid inflation concerns and geopolitical uncertainty, and it is currently in an undervalued state with negative factors already priced in, according to André Dragosch, Head of Research for Europe at Bitwise. In an interview with CoinDesk, he said that BTC's bull market has coincided with a strong economy and rising inflation expectations, which is why it has recently outperformed U.S. stocks and gold. Dragosch noted that BTC is less sensitive to interest rates than gold, making it less affected by rising bond yields. He added that while an uncertain monetary policy stance is a barrier to price increases, BTC has already priced in this risk. Dragosch suggested that BTC is currently trading at a macro discount and that future key triggers will include an improved monetary policy environment, an end to the conflict in the Middle East, and the reopening of the Strait of Hormuz.