Bitcoin is losing ground on Donald Trump's rhetoric. Here's how much the world's largest cryptocurrency is really worth
Donald Trump's message on the Truth Social platform about “destroying civilization” is dangerous news not only for Iranians. Their elected authorities can always agree to unblock the Strait of Hormuz and prevent it. Cryptocurrency holders, however, have no driving power and have recently only been able to watch their wealth shrink.
In March, their mood improved a little, as bitcoin rebounded by 1.9%. during the month, but this rebound was modest considering the previous five months of decline, including three times where declines exceeded 10%. April also gave hope until April 6. On Tuesday we have another negative day.
Bitcoin loses 1.4% in 24 hours, falling to 68.4 thousand. hole. Thus, it has given up most of the gains from April and is growing only 0.5% this month.
Investors still remember that declines were followed by increases that offset these declines, so there is no panic in sight. The question is, how long will they remain this way if the situation changes over time?
How much is bitcoin really worth?
Despite the declines, Bitcoins are still trading with a large break in relation to their fundamental value. According to the Glassnode website, based on real values, i.e. non-financial transactions in this cryptocurrency from the last 24 hours, its value is currently PLN 54.1 thousand. hole.
Read also: Saylor buys BTC for USD 330 million – time for Bitcoin Hyper?
It can be said that the current quotations are based on the assumption that the pace of introducing bitcoin into normal circulation and normal transactions will increase. Hence the overvaluation of bitcoin.
ETH undervalued
The world's second cryptocurrency, ethereum, loses 2.8%, falling to $2,081. The situation here is the opposite to bitcoin, because the fundamental value measured using the same method is, according to Glassnode, $2,346, which means… this particular cryptocurrency is undervalued.
The capitalization of the entire crypto market falls by 1.4% on Tuesday. up to USD 2.34 trillion
Author: Jacek Frączyk, editor of Business Insider Polska
