Why Bitcoin Is Cheap At $23,000, Says Fidelity Expert

Bitcoin has been pushed down further implicit today’s trading league and approaches captious levels of support. The archetypal crypto by marketplace headdress gave backmost each the profits from past week rallied and has been moving successful the reddish implicit the past 24 hours.

At the clip of writing, Bitcoin (BTC) trades astatine $23,400 with sideways question successful the past time and a 2% nonaccomplishment implicit the past 7 days.

BTC’s terms moving sideways connected the 4-hour chart. Source: BTCUSD Tradingview

Director of Macro for concern steadfast Fidelity Jurrien Timmer believes semipermanent Bitcoin investors person an accidental to summation their holdings astatine existent levels. Via his Twitter account, the adept claims Bitcoin is inexpensive arsenic helium explored the cryptocurrency’s terms versus worth chart.

Timmer’s bullish thesis is based connected BTC’s adoption curve and the apt script wherever this curve volition proceed to inclination to the upside and summation the underlying worth of the cryptocurrency. As seen below, determination is simply a nonstop narration betwixt BTC’s adoption and its price.

The illustration beneath shows the BTC price/network ratio, however Bitcoin reacts to much adoption, and its price. The erstwhile metric trended little than BTC’s terms until it was capable to interruption supra a captious absorption portion and crook into support.

Source: Jurrien Timmer via Twitter

Bitcoin has been moving connected that enactment for implicit a month, coinciding with BTC’s terms reaching a yearly debased of astir $17,700. As the illustration supra shows, these levels person historically operated good arsenic resistance/support and hint astatine BTC’s terms forming a bottommost astir that area.

Timmer said the pursuing connected BTC’s capableness to proceed appreciating successful the agelong term:

Bitcoin’s price-to-network ratio (my proxy for a valuation multiple) is backmost to 2014 levels. Meanwhile, its web continues to grow, astir successful enactment with a powerfulness regression curve. For me, the main nuance is the slope of the adoption curve. Whether we usage the mobile-phone curve oregon net curve arsenic proxies, Bitcoin’s terms is beneath its existent and projected network-growth curve (…).

Who Is Buying Bitcoin At Its Current Levels?

If Timmer’s predictions are correct, the terms of Bitcoin should inclination higher and scope an all-time precocious of $100,000 by 2050 arsenic much radical follow it, and its circulating proviso decreases. This could propulsion BTC’s terms adjacent $1 cardinal by 2030.

Source: Jurrien Timmer via Twitter

Timmer besides compared BTC’s terms to Gold and concluded that the cryptocurrency experienced its “biggest oversold information successful years”. This supports the expert’s mentation that BTC’s terms mightiness person recovered a coagulated bottommost connected higher timeframes.

Additional information from Timmer records an summation successful the fig of BTC Holders. 13% of the cryptocurrency’s full proviso has entered the 10-year unspent play with much and much radical buying it successful the agelong run.

Who is buying Bitcoin these days? Apparently not the tourists (i.e., short-term holders). The percent of Bitcoins held little than 3 months has hardly budged lately. /5 pic.twitter.com/fKpvbEhE89

— Jurrien Timmer (@TimmerFidelity) August 17, 2022