Three days ago, the price of bitcoin (BTC) seemed to be on an upward trajectory, reaching 24.5 thousand dollars, a level not reached since mid-June. Meanwhile, the queen of cryptocurrencies has returned to her nasty habits, recording a 6% decline. That said, there is no need to worry about the fate of bitcoin, according to some experts. In fact, his epic is just beginning to be written. In the long term, we can expect the BTC price to reach all-time highs.
Jurrien Timmer’s predictions on bitcoin
On Twitter, Jurrien Timmer, head of global macroeconomics for the investment company Fidelity, shared his forecasts on the evolution of cryptocurrencies. According to him, bitcoin is currently cheap. In reality, his point is based on the theory of the bitcoin adoption curve. Which states that bitcoin has been following an abrupt S-shaped trajectory since its inception.
According to the observations of the expert, “the price/network ratio of bitcoin (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, especially at the level of the slope. According to him, bitcoin is undervalued. To be convinced of this, just look at the real and forecast growth curve of the token. The latter is a reference instrument for determining the price of BTC.
The analyst also examined the price of bitcoin in relation to 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 the buyers of the moment are medium- and long-term investors. He also points out that the rate of bitcoins held for less than three months has been relatively stagnant 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 a lot of speculation about theevolution cryptocurrencies. At the moment, many experts remain enthusiastic about the progress of bitcoin. Jurrien Timmer is one of them. But more generally, the specialist is convinced that the bear market is coming to an end.
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I came to blockchain out of curiosity and I stayed there out of passion. I was amazed by the possibilities it offers through its various use cases. With my pen, I hope to help democratize this technology and show how it can help make the world a better place.