Three days ago, the price of bitcoin (BTC) appeared to be on an upward trajectory, hitting $24.5 thousand, a level not seen since mid-June. Meanwhile, the queen of cryptocurrencies has returned to her nasty habits, registering a drop of 6%. That said, there is no need to worry about the fate of bitcoin, according to some experts. In reality, his epic is just beginning to be written. In the long term, we can expect the price of BTC to reach all-time highs.
Jurrien Timmer’s bitcoin predictions
On Twitter, Jurrien Timmer, head of global macroeconomics for investment firm Fidelity, shared his predictions for the evolution of cryptocurrencies. According to him, bitcoin is currently cheap. In fact, his point is based on the theory of the adoption curve of bitcoin. Which states that bitcoin has been following a steep S-shaped trajectory since its inception.
According to the expert’s observations, “bitcoin’s price-to-network ratio (my indicator of a valuation multiple) has returned to 2014 levels. Meanwhile, its network continues to grow, roughly in line with a power regression curve”.However, he notes a fundamental difference in the shape of the adoption curve, particularly in terms of the slope. According to him, bitcoin is undervalued. To be convinced of this, just look at the actual and forecast growth curve of the token. The latter is a reference instrument for determining the price of BTC.
The analyst also looked at the price of bitcoin against gold. According to him, the recent wave of liquidation has resulted in the most significant “oversold condition” that the market has known for a long time. That said, Timmer argues that current buyers are medium to long-term investors. He also points out that the rate of bitcoins held for less than three months has seen relative stagnation lately. This reflects a growing desire to move towards a HODLing type approach in the current context.
The recent market turmoil has given rise to much speculation about theevolution cryptocurrencies. At present, many experts remain enthusiastic about bitcoin’s progress. Jurrien Timmer is one of them. But more generally, the specialist is convinced the bear market is coming to an end.
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