Brian Dixon, CEO of Off the Chain Capital, believes Bitcoin is undervalued.

Speaking with Rob Nelson on Roundtable , Dixon noted that Bitcoin is currently at a “huge discount” relative to its fair value and that any dip would be an even bigger buying opportunity.

“If a dip occurs, we’re looking at a deeper discount from there,” Dixon said. “So if we see these things playing out right now with this fundamental shift — just even a month ago with the outgoing administration, the Biden-Harris administration, we were at significant headwinds. And here we are 30 days later and we’re seeing a 180-degree flip. And it's not only a flip — it’s a flip with tailwinds.”

At the time of writing, Bitcoin is trading at $105,000 levels. The highest price paid for Bitcoin is $108,786, which was recorded on Jan. 20.

Dixon also pointed out the appointment of pro-crypto Senator Cynthia Lummis to lead the Senate’s new Digital Assets Committee as a major milestone for the industry.

“This whole announcement that was released today is huge,” he said. “Seeing Senator Cynthia Lummis being able to sit on the digital assets chair of this whole new framework and getting to guide this through because she’s been so pivotal and instrumental in creating a legislative bill and framework for the Bitcoin Strategic Act and just for this space in general, being a champion of what she does.”

Bitcoin lending through banks?

Dixon believes the next 12 months will see major developments in compliance frameworks and institutional adoption, particularly because Staff Accounting Bulletin 121 (SAB 121) overturned.

“If the Staff Accounting Bill 121 gets overturned, which is likely going to happen, as a reminder, this basically blocked banks from custodying Bitcoin in the United States,” he said. “If that gets overturned, what happens? Banks can now custody crypto. What does that mean? You could lend against your digital assets with a bank.”

He compared the potential impact to traditional home lending, noting how vital it is for financial markets to allow borrowing against assets.

“Imagine how much smaller the market would be in the United States for homes if you couldn’t take a mortgage out to get a home if you couldn’t lend against your assets,” Dixon said. “Well, we have people today in the United States sitting on significant digital asset positions that really can’t lend in a traditional way with them. So if these get added to the banking infrastructure and you can lend against it, you’re going to see tremendous opportunity for inflows.”