Bitcoin's Fair Value Is $197,000, Bitwise Exec Says: Can BTC Close the Gap?

Bitcoin (CRYPTO: BTC) could be significantly undervalued relative to global liquidity, with an equilibrium price of $197,000 being the fair value, Bitwise’s Director and Head of Research André Dragosch argued on Tuesday.

Is a Fed Pivot The Next Major Catalyst for BTC?

Speaking to Bitcoin Magazine on Sept. 29, Dragosch said fiscal policy has already become more supportive, but monetary policy remains the missing piece for a sustainable Bitcoin bull market.

He argued that the Fed and other major central banks remain on a collision course with markets as elevated interest rates tighten financial conditions.

One potential trigger for a policy shift could be stress in bonds and equities.

Bitwise’s research found that around 80-basis-point increase in the 10-year Treasury yield over 20 trading days materially increases the probability of a sharp S&P 500 correction.

Dragosch said the latest 20-day increase was around 50 basis points with higher yields already filtering into mortgage rates and the housing market.

A larger equity correction could increase recession and financial-stability risks, potentially pushing the Fed toward a pause or eventual pivot.

Why Bitcoin’s Model Points to $197,000