Three days ago, the price of bitcoin (BTC) seemed to be on the rise, hitting $24.5 thousand, a level not seen since mid-June. Meanwhile, the queen of cryptocurrencies has returned to her bad habits, registering a fall of 6%. 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 BTC price to reach all-time highs.
Bitcoin predictions by Jurrien Timmer
On Twitter, Jurrien Timmer, global head of macroeconomics for investment firm Fidelity, shared his predictions for the evolution of cryptocurrencies. According to him, bitcoin is cheap right now. In fact, his point is based on the theory of the adoption curve of bitcoin. That says that bitcoin has followed a steep S-shaped trajectory since its inception.
According to the expert’s opinion, “Bitcoin’s price-to-network ratio (my indicator of valuation multiple) has returned to 2014 levels. Meanwhile, its network continues to grow, roughly in line with a power regression curve.”. However, he notes that there is a fundamental difference in the shape of the adoption curve, particularly in terms of slope. According to him, bitcoin is worthless. To be sure of this, just look at the actual and forecast growth curve of the signal. 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 most significant result is the recent wave of liquefaction “oversold condition” that the market has been known for a long time. That said, Timmer argues that the 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 recently. This reflects the growing desire to move towards a HODLing approach in the current context.
Due to the recent market turmoil there is a lot of speculation about the evolution of cryptocurrencies. Currently, many experts are still enthusiastic about the progress of bitcoin. Jurrien Timmer is one of them. But more generally, the specialist is sure the bear market is coming to an end.
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I came to blockchain out of curiosity and stayed with it 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.