- According to the latest Grayscale research report, on-chain metrics show that BTC is trading below the long-term level at $60,000.
- This indicator says that BTC is cheap, but it is not as there have been previous cyclical lows on previous crashes like the FTX bear run in 2022.
- The company said that the process is in compliance with the CLARITY Act and the stability of BTC holders.
On June 9, Grayscale shared a report on current Bitcoin price movements across all crypto markets.
Grayscale Research Says This Bear Market Is Deeper Than Previous Downs
According to research and Grayscale, on the chain data shows that Bitcoin is currently trading below the average for a long time, and seems to be irrelevant. However, the company said that the price of Bitcoin it is not as cheap as it was during the bear market during the FTX fall in 2022.
The study also stated, “On-chain metrics show that Bitcoin is cheap, but not as cheap as it has been in the past. Whether we find the bottom of the market depends on the upcoming events and the CLARITY Act, but we believe this is a buying opportunity for long-term investors.”
To carry out this research, Grayscale has used a chain analysis tool. This is an average of many popular metrics. According to this indicator, Bitcoin is trading at a lower price compared to its historical values. However, the company made it clear that the current bear market has been soft compared to previous cycles.
“We believe that this bear market may be shallower than before, due to a very volatile market, and changes in the market from the availability of ETP, the deployment of financial platforms, and other types of implementation,” said the research.
In this report, investors are currently looking at the dynamics of the digital economy and how BTC holders are performing in the short term. Grayscale has identified two factors that are driving the BTC price on the short-term chart.
The first is the advancement of the Digital Asset Market Clarity Act (CLARITY) in the Senate. In May, the Senate Banking Committee approved the CLARITY Act after a long delay.
Senator Cynthia Lummis said in a post on X, saying, “I have spent years preparing for this. The Clarity Act is the biggest budget bill of this generation, and we’re going to deal with it. “
The main thing for investors to look at is whether Bitcoin holders will be able to settle on their website.
“We believe that current prices present an opportunity for long-term investors to consider the dollar value of their Bitcoin purchases. Smart investors may want to consider waiting for CLARITY,” said a Grayscale analyst.
Bitcoin Struggles to Recover Amid Big ETF Outflows
According to CoinMarketCap priceBTC is currently trading at around $61,901 after seeing a 21% drop in the last 30 days.
This financial crisis has created a huge risk in trading in the crypto market as investors start to withdraw their funds. Bitcoin exchange-traded funds (ETFs) such as BlackRock ETFs have seen the longest outflow in their history, lasting 13 days. In total, investors have withdrawn $4.4 billion.
Even BTC ETFs are still witnessing huge outflows. On June 5, BTC ETFs recorded an outflow of approximately $325.7 million, according to Father’s side. On June 8, it saw an outflow of $91.4 million. This indicates a decrease in investor confidence in the crypto market during this period of volatility.
