Unlock Potential: Bitcoin Price Remains Bargain Zone as US Jobs Report Boosts Rate Cut Hopes

Is the current Bitcoin price still a buying opportunity? Despite recent activity, some analysts suggest Bitcoin remains significantly undervalued, presenting a potential opportunity for investors. Recent economic data from the US is also adding to optimism, hinting at possible shifts in monetary policy that could favor risk assets like cryptocurrencies.

Why is Bitcoin Price Considered Undervalued?

According to a report from Fidelity Digital Assets, the mid-term outlook for Bitcoin has shifted into an “optimism” zone, trending towards undervaluation. This assessment is based on the ‘Bitcoin Yardstick’ metric, which compares Bitcoin’s market capitalization to its hashrate. A lower ratio suggests Bitcoin is cheaper relative to the energy security of its network.

• The Bitcoin Yardstick stayed within -1 and 3 standard deviations in Q1 2025, a cooling from Q4 2024 levels.
• Days above 2-standard deviations dropped from 22 to 15, with none above 3, indicating a reduced cost relative to network strength.

Fidelity also notes Bitcoin is in an “acceleration phase,” where rallies are common, though they caution about potential blow-off tops. Investor behavior supports a long-term view, with illiquid supply increasing from 61.50% to 63.49%, while liquid supply fell by 4%. This suggests holders are committing to longer positions.

Institutional Inflows Continue Strong

Supporting the positive outlook are significant Institutional inflows into Bitcoin investment products. BlackRock’s iShares Bitcoin Trust (IBIT) ETF recently saw a massive inflow of $970.9 million on April 28, 2025. This was its second-largest daily inflow since launching in January 2024.

• Since April 22, IBIT has accumulated over $4.5 billion in net inflows.
• This surge occurred even as some competitor ETFs faced outflows.
• IBIT now manages over $54 billion in assets, holding a 51% share of the US spot Bitcoin ETF market.

These substantial inflows highlight strong institutional appetite for Bitcoin, reinforcing the narrative of growing adoption and confidence in the asset class.

How the US Jobs Report Impacts Bitcoin Price and Fed Rate Cuts

The latest economic data is also playing a role in market sentiment. The March 2025 US Job Openings and Labor Turnover Summary (JOLTS) report showed a decline in open jobs to 7.19 million, below the expected 7.48 million. This figure indicates a cooling labor market.

• A cooling labor market can reduce inflationary pressure.
• This increases the likelihood of the Federal Reserve implementing Fed rate cuts sooner.
• Lower interest rates generally weaken the dollar and make risk assets like Bitcoin more attractive.

Conversely, strong jobs data might delay rate cuts, potentially pressuring crypto prices. With federal layoffs reaching a 2020 peak, market expectations are leaning towards a more dovish stance from the Fed.

Expert Outlook on Bitcoin and Rate Cut Hopes

Economist and Bitcoin commentator Alex Kruger views the JOLTS data as a positive short-term factor for Bitcoin. He describes Bitcoin as a “risk/gold hybrid” positioned to benefit from potential tariff de-escalation and shifts in monetary policy.

Kruger suggests markets may focus on upcoming corporate earnings and the next Federal Open Market Committee (FOMC) meeting, where Fed Chair Powell might signal earlier rate cuts. While warning of potential market volatility in Q3, Kruger predicts Bitcoin’s unique risk-reward profile will allow it to outperform altcoins, which he notes appear overbought.

Understanding Bitcoin Undervalued Metrics

The concept of Bitcoin undervalued is often debated. Metrics like the Bitcoin Yardstick provide one perspective by comparing market value to network security. Other metrics might look at on-chain data, historical price cycles, or comparison to traditional assets.

Fidelity’s use of the Yardstick metric suggests that relative to its underlying network strength and security (represented by hashrate), Bitcoin’s current market price is in a range historically associated with being less expensive.

Summary: Is Bitcoin Still a Bargain?

Combining the signals from Fidelity’s valuation metrics, continued strong Institutional inflows, and the implications of the recent US jobs report for potential Fed rate cuts, the picture for Bitcoin price appears cautiously optimistic. While volatility remains a factor, particularly heading into Q3, the confluence of these indicators suggests that for those with a mid-term perspective, Bitcoin may indeed still be trading in a zone offering significant potential value.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.