BTC price is still 'signficantly undervalued,' Bitwise says: Crypto Daybook Americas

CoinDesk

by Francisco Rodrigues

February 20, 2026

AI-Generated Deep Dive Summary

Bitcoin's price remains significantly undervalued compared to broader macroeconomic indicators, according to Bitwise. Despite a 2% gain over the past day, bringing its value above $68,000, market sentiment remains entrenched in "extreme fear," as measured by the Fear and Greed Index, which has stayed at this level for an unprecedented 20 consecutive days. André Dragosch of Bitwise highlights that Bitcoin typically avoids V-shaped recoveries after significant sell-offs, suggesting a sideways or downward trend is more likely in the near term. However, there are signs of optimism on the horizon. The Clarity Act, a key U.S. cryptocurrency regulatory bill, now has an 80% chance of passing in 2026, up from previous estimates. This potential legislation could bolster alternative tokens like ether and solana, while Bitwise's Cryptoasset Sentiment Index indicates a neutral market sentiment. Dragosch also notes Bitcoin's undervaluation relative to global money supply, gold, and ETP (Exchange-Traded Product) flows, suggesting that once risk appetite returns, the cryptocurrency could experience a significant price rebound. Despite these positive signals, caution remains high. Data from CryptoQuant reveals record levels of large Bitcoin holders moving their assets onto Binance, often an indicator of intent to sell. This activity could increase spot market supply and pressure prices further. While Dragosch dismisses fears that Bitcoin acts as a "canary in the coal mine" for broader economic downturns, he acknowledges the importance of monitoring macroeconomic indicators, such as U.S. GDP growth and

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Originally published on CoinDesk on 2/20/2026