Quick Facts
BlackRock’s iShares Bitcoin Trust (IBIT) ETF has recorded its second-largest daily inflow of $970.9 million.
The current price of Bitcoin is below its true value according to Fidelity Digital Assets.
The illiquid supply of Bitcoin has been rising, suggesting that more investors are taking a long-term approach to their holdings.
Bitcoin Remains Attractive
The recent US jobs report has taken the market by storm, sparking a fresh wave of speculation about potential interest rate cuts. Meanwhile, Bitcoin’s mid-term outlook has been reevaluated by experts, leading many to believe that the price is still in the bargain zone. In this article, we will delve into the latest developments in the world of Bitcoin and explore how the current market trends are affecting its value.
Fidelity Digital Assets: Bitcoin is Undervalued
According to Fidelity Digital Assets, a leading investment firm, Bitcoin is undervalued and is poised for a significant price increase. The firm’s analysts have been monitoring the market closely and have concluded that the current price is below its true value. This assessment is supported by the Bitcoin Yield Index, which measures the cryptocurrency’s market capitalization in relation to its hashrate. A lower ratio indicates that Bitcoin is relatively cheap compared to its network strength.
Fidelity Digital Assets has also pointed out that the illiquid supply of Bitcoin has been rising, which suggests that more investors are taking a long-term approach to their holdings. This trend is further supported by the firm’s Illiquid Supply Shock Ratio, which is currently 16% below its 2017 peak.
BlackRock’s iShares Bitcoin Trust: A Record-Breaking Inflow
In a significant development, BlackRock’s iShares Bitcoin Trust (IBIT) ETF has recorded its second-largest daily inflow of $970.9 million. This massive influx of capital has driven the ETF’s assets under management to over $54 billion, a significant increase from its earlier levels. The popularity of IBIT is evident, with over $4.5 billion in net inflows since April 22.
The US Jobs Report: A Boost for Bitcoin
The March 2025 US Job Openings and Labor Turnover Summary (JOLTS) report has been widely discussed in the market, with many experts citing it as a key factor that could impact interest rates. A lower-than-expected JOLTS number has raised hopes of a potential rate cut, which could weaken the US dollar and boost the value of Bitcoin.
Economist and Bitcoin commentator Alex Kruger has also weighed in on the situation, suggesting that the JOLTS report could lead to a short-term win for Bitcoin. He believes that the cryptocurrency’s unique risk-reward profile makes it an attractive option for investors seeking to hedge against market volatility.
A Healthy Bargain Zone
Given the current market trends and expert assessments, it’s clear that Bitcoin is still in a bargain zone. The undervalued nature of the cryptocurrency, combined with its rising illiquid supply and long-term approach, makes it an attractive option for investors. Additionally, the JOLTS report has generated hopes of a potential rate cut, which could further boost the value of Bitcoin.
What’s Ahead for Bitcoin?
As we look ahead, it’s essential to consider the potential implications of interest rate cuts on the value of Bitcoin. A rate cut could weaken the US dollar, making it more attractive for investors seeking to hedge against market volatility. Additionally, the rising illiquid supply of Bitcoin and the firm’s long-term outlook may continue to support the price.
However, it’s also crucial to acknowledge the potential risks and challenges that lie ahead. A Q3 economic slowdown could lead to increased market volatility, making it essential for investors to remain cautious and informed. As always, it’s essential to do your own research and consider multiple perspectives before making a decision.
John is a seasoned writer and analyst with a passion for cryptocurrency and blockchain technology. He has been following the market for several years, studying the trends and developments that shape the industry. John’s articles aim to provide insightful and actionable advice for investors and enthusiasts, helping them navigate the fast-paced world of cryptocurrency.
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