Just came across an interesting analysis from Bitwise showing that Bitcoin is currently trading about 40% below its modeled fair value. This is based on global inflows into exchange-traded products, and the numbers suggest there is still significant upside potential if investor flows pick up again.

What fascinates me about this: The undervaluation is actually a classic signal of a market that is being overly pessimistic. If capital inflows into these products return to previous levels—and that’s likely to happen—Bitcoin could be worth much more.

The analysis emphasizes how much current market psychology is driven by fear and uncertainty. At the same time, I see discussions everywhere about alternative plays and meme coins with potential that are currently gaining attention. But for me, it remains clear: if Bitcoin is really 40% undervalued here, that should be the basis for any portfolio consideration.

The only question is: When will confidence return? But if it does, the next few months could be interesting.