Bitcoin ‘Grossly Undervalued’ at Current Prices, Traders Say Ahead of CPI, Trump-Harris Debate Week

Bitcoin remained relatively stable over the weekend, trading between $54,000 and $55,000. This stability followed a significant liquidation of crypto long positions after a U.S. jobs report suggested a weaker labor market.

This week is packed with events that could impact the market, including a highly anticipated Presidential debate and the release of key U.S. economic indicators like the Consumer Price Index (CPI) and Producer Price Index (PPI). Analysts at Presto Research argue that Bitcoin is currently undervalued, highlighting its record-high network security amid ongoing macroeconomic concerns.

During the weekend, Bitcoin (BTC) experienced low trading volumes as it fluctuated between $54,000 and $55,000. On Friday, the market saw over $220 million in crypto long positions liquidated due to a sudden drop after the jobs report. Major tokens, including Ethereum (ETH), Solana (SOL), Cardano (ADA), Ripple (XRP), and Tron (TRX), saw modest increases of around 0.5% over the last 24 hours. Some mid-cap tokens, like the memecoin NEIRO and BitTorrent (BTT), surged by 25%.

Presto Research’s analysts, Peter Chung and Min Jung, believe that Bitcoin is “grossly undervalued” at current prices, citing the network’s all-time high hashrate of 679 EH/s, which enhances its security. They suggest that the introduction of spot ETFs places Bitcoin in a favorable position for future growth.

Bitcoin miners have been expanding their capacity since August, coinciding with these record-high hash rates, which often signal price bottoms.

Traders noted that the recent lower-than-expected U.S. payroll figures indicate a weaker labor market, yet the drop in unemployment has eased fears of a recession. Lucy Hu, a senior analyst at Metalpha, observed that this sentiment has influenced broad market movements, and she expects continued volatility in the crypto market leading up to the next Federal Reserve meeting.

In the coming week, Bitcoin could experience significant movements with the release of the August CPI on Tuesday and PPI on Wednesday. Additionally, the debate between crypto-friendly Republican candidate Donald Trump and Democrat Kamala Harris is drawing attention, especially as Trump has expressed ambitions to position the U.S. as the “crypto capital” of the world. Reports suggest that Harris’s team is also exploring policies to support the crypto industry.