Fidelity's Yardstick Suggests Bitcoin Market Bottom Nears

Fidelity Digital Assets has released its Q3 Signals Report, highlighting that Bitcoin is nearing a market bottom according to its proprietary valuation metric called the Yardstick.

The Yardstick measures whether an asset is trading at a fair price relative to its security 'energy cost', and it's currently hovering near historic lows. This suggests that Bitcoin may be trading at a substantial discount, with undervaluation levels reaching 83% of the past 92 days.

Fidelity notes that this cycle has lower price volatility than previous ones, which is likely due to the maturity of the mining industry and its more efficient management of energy costs. Historically, this undervalued zone has aligned with accumulation phases and relative bottoms, lasting almost 300 days in previous cycles. The current bear market has experienced 203 days so far.