Bitwise: Bitcoin remains undervalued, gold is 75% overvalued

Bitcoin is significantly undervalued despite an expansion in global liquidity, according to a monthly report from Bitwise cited by Cointelegraph. The asset manager stated that global liquidity is increasing again, driven by $1.9 trillion in annual U.S. Treasury issuance, plans for $2,000 cash payments, and the end of the Federal Reserve's quantitative tightening. The report also noted contributing factors from the past two years, including $110 billion in fiscal stimulus from Japan, $1.4 trillion from China, Canada's resumption of quantitative easing, and over 320 interest rate cuts worldwide. Bitwise explained that while these measures have pushed the global M2 money supply to a record $137 trillion, Bitcoin is trading at a level approximately 66% below what is implied by the current money supply. According to the firm's liquidity model, the fair value for BTC is around $270,000, whereas gold is considered to be overvalued by about 75%.