Such a price structure has been relatively rare in bitcoin’s 11-year history, making the 0.80 reading on the Mayer Multiple a point of undervaluation.
“We have mapped out a Mayer Multiple of 0.8 as a historical ‘undervaluation’ level.
“Bear market floors of past cycles are typically hammered out in two phases relative to the 0.8xMM level, first in the early stage of the bear .
The Fed is expected to hike the benchmark interest rate by 50 basis points later on Wednesday, having kicked off the tightening cycle with a 25 basis point hike last month.
Weston added that under the current pricing, the market expects the Fed to take the fed funds rate above the neutral rate of 2.4% and into the restrictive territory by September.
“Within a backdrop of deteriorating economic conditions, a hawkish Fed poses a significant threat to crypto markets in the short-term.
“We think that the market is fully expecting a 50-bp rate hike and announcement of QT at $95 per month.
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