Investors Think Bitcoin Is Underpriced

Bitcoin (BTC) was little changed over the weekend ahead of a busy week that includes the presidential debate and the release of U.S. economic data showing changes in consumer prices and inflation.

BTC traded in a tight range between $54,000 and $55,000 over the weekend, with $220 million worth of crypto long positions liquidated on Friday following the release of the employment report.

Ether (ETH), Solana (SOL), Cardano (ADA), Ripple (XRP) and Tron (TRX) gained only 0.5% in the last 24 hours. Neiro (NEIRO) and BitTorrent (BTT), memecoins on Ethereum, challenged the market by jumping 25%.

“Aside from the macro factors that have been dominating BTC prices lately, the market has been overlooking one of the fundamental elements supporting Bitcoin’s value: network security,” Presto analysts Peter Chung and Min Jung wrote. “The computational power (hash rate) securing the network reached an all-time high of 679 EH/s, making it by far the most secure network.”

“If you believe this trend will continue, then we can say that BTC is currently priced lower than it should be.”

A high hash rate usually signals a bottom in the asset’s price, but right now bitcoin miners have been able to increase their capacity since August.

Meanwhile, some traders say the weaker-than-expected US payroll data points to a weak labor market, while the lower unemployment figures ease recession concerns.

The August Consumer Price Index (CPI), expected to be announced on Tuesday, and the Producer Price Index (PPI), expected to be announced on Wednesday, may change the course of bitcoin.

In addition, crypto-friendly Republican candidate Donald Trump and Democrat Kamala Harris will face off on Tuesday. While Trump announced that he aims to make the US the “crypto capital” of the world, Harris’ aides are reportedly working on policies to grow the sector.