Fidelity Flags October and Bitcoin Bottom as ‘Yardstick’ Hits Historic Lows

“BTC’s Yardstick is hovering near historic lows, while several sentiment indicators are approaching capitulation territory,” stated Fidelity in its Q3 Signals Report on Tuesday.

However, bitcoin is currently trading around 50% below its all-time high, which is still shallow compared to previous bear market bottoms.

October Eyed as Key Cycle Timeframe The Yardstick metric compares bitcoin’s market capitalization to network hashrate via a normalized Z-score, with values below -1 standard deviation indicating undervaluation.

It essentially measures whether the asset is trading at a fair price relative to the “energy cost” of its security. Low or negative readings signal undervaluation or cheap bitcoin, while high readings signal overvaluation and expensive BTC.