Bitcoin Trades Below Key Support Level Amid Fed Rate Decision

Despite ongoing hawkish risks from the Federal Reserve, Bitcoin valuation indicators suggest it is in a historically undervalued range. According to Bitwise analysts, the Bitcoin Mayer Multiple indicator has dropped below 1.0, which corresponds to a long-term accumulation phase and indicates 'deep value' characteristics.

However, investor participation remains sluggish, with new capital entering the Bitcoin network continuing to slow down. The Realized Market Cap Growth indicator from CryptoQuant shows that the market has stayed in a bear phase since October 2025, with 7-day and 59-day moving averages declining from about 70 in the fourth quarter of 2025 to 13.9 and 19.1 as of June 17, respectively.

Compared to AI-related stocks like Nvidia, Bitcoin is significantly undervalued, while the latter currently trades at a premium relative to long-term trends. Potential fundraising or IPO deals for SpaceX, Anthropic, and OpenAI could attract more than $200 billion in investor demand, intensifying competition for market liquidity.

After the Federal Reserve kept its rate unchanged at 3.5% to 3.75%, Bitcoin fell below $64,000. Investor Jelle noted that $64,000 is a key price level for buyers, and if it holds, a rebound to $70,000 could take place in the coming weeks.