Fidelity’s Timmer Says Bitcoin Is “Cheap” at Current Levels

Fidelity’s Timmer Says Bitcoin Is “Cheap” at Current Levels

  • Bitcoin
  • August 18, 2022
  • No Comment
  • 5

article image

Alex Dovbnya

Jurrien Timmer, Fidelity executive, believes that Bitcoin is currently cheap based on price-to-network ratio

Jurrien Timmer, director of global macro at Fidelity Investments, claims that Bitcoin is “cheap” at current levels.

He has pointed to the fact that the price-to-network ratio of the world’s largest cryptocurrency is currently at the 2014 level, which suggests that it is undervalued.

Image by @TimmerFidelity

The sell-off that occurred recently “produced the biggest oversold condition” in a long period of time, according to Timmer.

The analyst has noted that the recent Bitcoin recovery was mainly driven by long-term holders instead of tourists. The share of Bitcoin held for at least a decade has now grown to 13%.

Bitcoin is currently trading at the $23,400 level after bulls have repeatedly failed to gain footing above $24,000.

In February, Timmer compared Bitcoin’s pace of adoption to that of tech giant Apple, whose growth followed a classic S-curve pattern since the mid-90s.

As reported by U.Today, Fidelity also presented an S-curve that mirrors the internet adoption curve. In such a scenario, the price of Bitcoin may end up reaching $144,000.

The Merge may be game changer for Ethereum

Timmer also says that Ethereum, the second largest cryptocurrency, has not been rewarded with a higher price-to-network ratio due to the fact that it is perceived as more centralized and less scarce.

He believes that this trend might change after the Merge event. Due to the so-called “triple halving,” Ethereum is expected to become a deflationary cryptocurrency.

Last month, Timmer tweeted that Ethereum was “even cheaper” than Bitcoin. The leading altcoin is currently trading at $1,846 on the Bitstamp exchange.

Source link

Related post

US Denies Link Between Iran’s Release of Americans and Funds Held Abroad

US Denies Link Between Iran’s Release of Americans and…

Washington —  The United States on Sunday rejected Iranian reports that Tehran’s release of two detained Americans will lead to the…

Antalpha Enters Licensing Agreement with S&P Dow Jones Indices

SINGAPORE, Oct. 3, 2022 /PRNewswire/ — Antalpha Capital Pte. Ltd. (“Antalpha”) has signed a licensing agreement to use the S&P Cryptocurrency Top…
Robert Kiyosaki Predicts US Dollar Will Crash by January — Suggests Buying Bitcoin – Economics Bitcoin News

Robert Kiyosaki Predicts US Dollar Will Crash by January…

The famous author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, has predicted that the U.S. dollar will crash…

Leave a Reply

Your email address will not be published.