Bitcoin’s deeply discounted versus AI-stocks, but hawkish Fed risk lingers: Bitwise

Bitwise analysts say Bitcoin trades in a historical value zone, but hawkish Federal Reserve signals and a competition for liquidity could sideline buyers.

Bitcoin's (BTC) valuation metrics continue to highlight a deep discount even as markets brace for a potentially hawkish Federal Reserve under new chair Kevin Warsh. Analysis from Bitwise Investments said BTC remains in a "deep value" zone after a valuation metric fell below 1.0, a level associated with long-term accumulation periods.

However, investor participation remains subdued, with CryptoQuant's realized cap growth metric remaining in a bear phase since late October 2025. This points to a steady slowdown in fresh capital entering the BTC network.

At the same time, a growing list of key companies going public raises increased competition for liquidity across the investment market, so the focus shifts to whether BTC attracts new capital amid tighter liquidity conditions.

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