#crypto #bitcoin#gold #Fidelity
$BTC $GLD
“Fidelity’s director of global macro says that based on the thesis that Bitcoin price will rise as its network grows, the flagship crypto asset is looking cheap”–Paul Ebeling
Jurrien Timmer, a Iop executive at financial services giant Fidelity Investments believes that Bitcoin is currently a bargain. “If you believe in Bitcoin’s adoption-curve thesis (i.e. that the network will continue to expand in line with previous S-curves), then it’s reasonable to view Bitcoin as cheap at these levels.”
According to the macro expert, the price of Bitcoin is below the actual and projected growth of its network.
“For me, the main nuance is the slope of the adoption curve. Whether we use the mobile-phone curve or internet curve as proxies, Bitcoin’s price is below its actual and projected network-growth curve. That curve provides a fundamental anchor for Bitcoin’s price.”
Mr. Timmer previously explained that Bitcoin’s adoption rate is likely to mirror that of mobile phones or internet technology.
Using the analogy of Bitcoin as digital gold, the king crypto was massively oversold during the recent market downturn and has deviated from the trend when the 2 are compared side by side.
“If Bitcoin is gold’s precocious younger sibling, it makes sense to look at Bitcoin priced in gold (i.e., Bitcoin’s beta to gold). Technically, the recent sell-off produced the biggest oversold condition in years (measured as the number of standard deviations from trend).”
The macro expert also says that amid the crypto downturn, the percentage of Bitcoin held for less than 3 months (short-term holders) remains relatively unchanged while the percentage of Bitcoin held for over 10 yrs (long-term holders) is rising.
“Who is buying Bitcoin these days? Apparently not the tourists (i.e., short-term holders). The percentage of Bitcoins held less than 3 months has barely budged lately.”
“But the number of HODLers keeps growing. The percentage of Bitcoin held for at least 10 yrs is now 13%.”
At time of writing, the King crypto is going for $21,761,21.
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Editor’s Note: The market cycle is a naturally occurring phenomenon, attributable to human psychology, and has repeated itself time and time again, though with some variations, in the lives of nearly all market traded instruments. This cycle repeats itself to varying degrees but is fairly accurate in representing the shift between market sentiments of euphoria and pessimism, and an acknowledgment of this natural phenomenon is Key to profiting from any traded instrument, including Bitcoin. My work shows a return to the mean and then all-time highs in here. Tune out fear.
Have a prosperous day, Keep the Faith!
