Bitcoin's Valuation Compared to Gold and Global Currency Supply Suggests Potential Price Reversal

Bitcoin is currently undervalued in comparison to gold and the global currency supply, which may indicate a potential price reversal, according to PANews. Samson Mow, CEO of Bitcoin technology company Jan3, shared on the X platform that Bitcoin's market value relative to gold or the global currency supply is below its trend line by 24% to 66%, while gold is considered overvalued. Mow also referenced the Bitcoin Z-score indicator, which tracks the deviation of BTC's price from its historical average. The Z-score for the Bitcoin-to-gold ratio is currently around -1.24. Historically, when this ratio's Z-score falls below -2, Bitcoin has experienced significant price increases. TradingView data shows that during the FTX collapse in November 2022, the indicator dropped below -3, leading to a more than 150% increase in BTC's price over the following 12 months. A similar pattern occurred during the COVID-19 pandemic in March 2020, when the indicator fell below -2, resulting in a more than 300% surge in Bitcoin's price over the next year.