After the first quarter, Fidelity Digital Assets revised its medium-term outlook for Bitcoin from “positive” to “neutral,” citing several indicators that suggest Bitcoin is no longer considered “cheap” amid the potential for increased selling pressure.
In its latest Signals report published on April 22, Fidelity Digital Assets cited the Bitcoin Yardstick or Hashrate Yardstick indicator, which works the same as the price-to-earnings ratio for stocks, as a way to determine whether Bitcoin is undervalued. Fidelity noted that the indicator’s deviation from the mean of 51% in the first quarter was between negative 1 and zero, meaning that “there was not a single day in the first quarter when Bitcoin was considered ‘cheap’.”
Fidelity said this suggests that Bitcoin is currently trading at a "fair value" and adjusted its medium-term outlook for Bitcoin to neutral. Other indicators cited by the company also added to its neutral outlook, as long-term holders are increasing selling pressure and 99% of addresses are in profit, which "may stimulate selling." (Cointelegraph) #zachxbt
