No Result
View All Result
DEFI MAGNETS
  • Home
  • Cryptocurrency
  • Bitcoin
  • Ethereum
  • Blockchain
  • Exchanges News
  • Altcoin News
  • Market And Analysis
  • Regulation
DEFI MAGNETS
No Result
View All Result
Home Bitcoin
Nigerians trade N497bn Bitcoin amid CBN ban

Fidelity Chief Explains Why Bitcoin (BTC) Is Cheap At Current Level

Julie Henderson by Julie Henderson
August 18, 2022
in Bitcoin
0
332
SHARES
2k
VIEWS
Share on FacebookShare on Twitter


Over the last 45 days since July 2022 beginning, Bitcoin and the broader cryptocurrency market have given a strong run-up. As of now, Bitcoin is currently facing resistance at $24,000. Jurrien Timmer, Director of Global Macro at Fidelity believes that Bitcoin is currently “cheap” as per the BTC adoption curve thesis.

Timmer explains that Bitcoin’s price-to-network ratio is currently back at 2014 levels. On the other hand, its network has continued to grow in accordance with the price regression curve.

Courtesy: Fidelity

The Fidelity director further explains: “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”.

Bitcoin and Gold Comparison

The Fidelity chief explains that if Bitcoin were to be compared with Gold, it will be important to see the Bitcoin/Gold ratio. He further adds that the recent sell-off has produced the most oversold conditions in recent years. “Technically, the recent sell-off produced the biggest oversold condition in years (measured as the number of standard deviations from trend),” he said.

One interesting fact that Timmer points out is that the percentage of Bitcoin HODLers is growing considerably. On a 10-year chart, the percentage of Bitcoin HODLers has moved above 13%.

Bitcoin vs Ethereum

Drawing a straight-up comparison between the Bitcoin and Ethereum networks, Timmer points out that the latter has grown at a much faster rate. He also notes that ETH hasn’t got rewarded enough for having a higher price-to-network ratio.

However, Timmer explains that the reason behind ETH not getting enough rewarded is that the Ethereum blockchain is less decentralized as compared to that of Bitcoin’s. He further adds:

“Perhaps some of that will change as ETH goes into its merge. The price analog of Ethereum vs. Bitcoin four years earlier continues to suggest that the crypto winter has come to an end.”

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Tags: BitcoinBTCCheapChiefCurrentExplainsFidelitylevel
Previous Post

Ontario crypto exchanges impose $30K CAD annual limit on altcoin buys

Next Post

European Central Bank steps in as banks dip toes in cryptocurrency and blockchain pool

Julie Henderson

Julie Henderson

Next Post
European Central Bank steps in as banks dip toes in cryptocurrency and blockchain pool

European Central Bank steps in as banks dip toes in cryptocurrency and blockchain pool

Argo Blockchain PLC Announces 2021 Sustainability Report

BitMEX Founder Arthur Hayes Says Crypto Traders Should Prepare To Buy Ethereum Dip – Here’s When

BitMEX Founder Arthur Hayes Says Crypto Traders Should Prepare To Buy Ethereum Dip – Here’s When

Popular Post

    Follow Our Page

    Recent News

    Altcoins Surge in a Sea of Green – Could There Be a Catch? By … – Investing.com

    Global Crypto User Adoption Outlook with CZ – BSC NEWS

    February 4, 2023
    Altcoins Surge in a Sea of Green – Could There Be a Catch? By … – Investing.com

    SBF bail guarantor to go public, UK crypto framework and Celsius… – Cointelegraph

    February 4, 2023

    Categories

    • Altcoin News
    • Artificial Intelligence
    • Bitcoin
    • Blockchain
    • Business
    • Cryptocurrency
    • Education
    • Ethereum
    • Exchanges News
    • Featured
    • Market And Analysis
    • Metaverse
    • News
    • Regulation
    • Uncategorized

    Follow Us

    Find Via Tags

    Altcoin Altcoins analysis Analyst Big Binance Bitcoin Blockchain BTC Buy Cardano Coin Coinbase CoinDesk Crypto Cryptocurrency Digital Dogecoin ETH ethereum exchange Exchanges FTX Global Heres Investors Magazine Market Markets merge Million Mining News Prediction price regulation Regulatory Report Risk Solana Token Top Trading Week XRP
    No Result
    View All Result
    • Home
    • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Blockchain
    • Exchanges News
    • Altcoin News
    • Market And Analysis
    • Regulation

    © 2021 DeFi Magnets