FameEX Hot Topics | 4 On-Chain Indicators Suggest Bitcoin Is Undervalued at $80K

Between March 28 and March 31, Bitcoin's price fell from $87,241 to $81,331—a sharp 6.8% correction that erased gains made over the prior 17 days. This downturn triggered liquidations totaling $230 million in long BTC futures and aligned with broader market weakness, as S&P 500 futures dropped to their lowest point since mid-March. Despite Bitcoin struggling to hold above $82,000 by the end of March, analysts remain optimistic, pointing to four key indicators that reflect ongoing investor confidence and potential short-term decoupling from traditional financial markets.

A major source of market instability stems from growing fears of a global trade war. On March 26, the U.S. imposed a 25% tariff on foreign-made vehicles, a move seen as protectionist and which led to a wave of pessimism in equities. Goldman Sachs cut its year-end S&P 500 forecast from 6,200 to 5,700, while Barclays reduced its projection to 5,900 from 6,600. In contrast, demand for safe-haven assets surged. Gold prices climbed above $3,100, and the U.S. dollar weakened, with the DXY index falling from 107.60 in February to 104.10 by the end of March.

Even amid volatility, Bitcoin has significantly outperformed the S&P 500 over the past six months, rising 36% while the index declined 3.5%. Though some critics have questioned Bitcoin’s role as a non-correlated asset or “digital gold,” on-chain data paints a different picture. As central banks shift toward looser monetary policies to counteract economic slowdowns, Bitcoin is increasingly seen as a hedge and long-term store of value.

One major indicator of network strength is the hashrate, which hit a record 856.2 million terahashes per second on March 28, up from 798.8 million in February. This surge suggests miners remain profitable and under no pressure to liquidate holdings. Glassnode data supports this view: only 125 BTC were sent from miner wallets to exchanges on March 30—far below the 450 BTC mined daily—indicating a lack of sell pressure from miners.

Institutional sentiment also appears strong. Bitcoin mining firm MARA Holdings filed to sell up to $2 billion in stock to boost its BTC reserves. Exchange balances dropped to a six-year low of 2.64 million BTC, implying more holders are opting to self-custody. Additionally, U.S. spot Bitcoin ETFs saw negligible outflows between March 27 and 28, reinforcing continued institutional trust in the asset despite short-term market jitters.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.