Bitcoin Seen as Undervalued by Grayscale as US CLARITY Act Progress and Leverage Risks Loom

Grayscale Investments’ research notes that Bitcoin's recent slide below $60,000 has pushed the cryptocurrency into a valuation range below its long‑term average, though not as deep as after the post‑FTX crash. Using a composite on‑chain indicator that blends net unrealized profit‑loss, price‑to‑coin‑days‑destroyed and market‑cap‑to‑thermo‑cap metrics, the firm concludes the asset is currently undervalued.

The analysis highlights two potential catalysts for Bitcoin’s next move. First, the fate of the CLARITY Act in the U.S. Senate – legislation that would create a federal market structure for digital assets, covering token classification, exchanges, custody and disclosure rules. The bill passed the House in 2025 and has been advanced by the Senate Banking Committee, but still requires full Senate approval. Second, the capacity of heavily leveraged Bitcoin holders to withstand market pressure without triggering forced liquidations that could reignite price declines.

Grayscale suggests that a muted preceding bull market and improved market structure—such as broader exchange‑traded product availability and institutional adoption—could make the current bear market shallower than previous cycles, offering a more attractive entry point for long‑term investors.