Bitcoin breaks $11,500 as sentiment metrics show it's still undervalued

Published on by Cryptoslate | Published on

The DeFi-induced bullrun has arguably pushed the crypto market upwards the past week, with Bitcoin, Ethereum, and other major cryptocurrencies giving gains of over 10-15% to investors.

Data feeds from one quantitative on-chain data provider prove the above, with sentiment metrics, in particular, paving the path for even higher prices.

Data on The TIE - a provider of alternative data for digital assets that quantifies investor perceptions on hundreds of digital assets - shows Bitcoin is showing bullish action in both short- and mid-term trades.

Sentiment remained stable even when Bitcoin suffered the infamous "Black Thursday" event in March when prices fell by over 45 percent over two trading sessions.

Just going by the data alone - Bitcoin has still not converged with the long-term public sentiment.

A "Gap" still remains, showing BTC is undervalued according to this particular metric.

Another chart shows the Twitter-verse is starting to be less concerned about Bitcoin's price.

The sentiment metrics followed yesterday's report of American high-income earners, and millennials, being among the most prolific buyers of large-cap cryptocurrencies in the U.S. As CryptoSlate reported, U.S. citizens purchased a massive $67 billion worth of cryptocurrencies in the first six months of 2020 alone.

"Bitcoin's current daily volume would need"fewer than 4 years of growth to exceed the daily volume of all US equities and fewer than 5 years to exceed the daily volume of all US bonds.

With the high sentiment and adoption rates; the data shows a two-year-long bear market might just be ending soon.