Bitcoin's 'Deep Value' Discount Faces Hawkish Fed Test

Bitcoin's valuation metrics continue to highlight a deep discount as markets brace for a potentially hawkish Federal Reserve under new chair Kevin Warsh. 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.

Investor participation remains subdued: CryptoQuant's realized cap growth metric has been in a bear phase since late October 2025, pointing to a steady slowdown in fresh capital entering the BTC network. Bitwise also noted growing competition for liquidity from a pipeline of major capital raises tied to SpaceX, Anthropic and OpenAI that could attract more than $200 billion in demand, and said elevated rates limit availability of capital for speculative assets.

The Federal Reserve kept interest rates unchanged at 3.5%-3.75%, a move Bitwise had expected, yet Bitcoin fell below $64,000 after the announcement. Axel Adler Jr.

United States

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