Bitcoin is cheap – Ethereum could be at the bottom – Markets and prices Bitcoin News

Bitcoin is cheap – Ethereum could be at the bottom – Markets and prices Bitcoin News

Fidelity’s Director of Global Macro Shares His Bitcoin and Ether Price Forecasts. His analysis shows that bitcoin is cheap, but ether could be even cheaper. “Ethereum could be near the bottom,” he added.

Fidelity Director of Bitcoin and Ether Price Forecasting

Jurrien Timmer, Director of Global Macro at Fidelity Investments Global Asset Allocation, shared his analysis of Bitcoin and Ether prices in a series of tweets on Friday. Timmer specializes in global macro strategy and active asset allocation. He joined Fidelity 27 years ago as a technical research analyst.

He explained why bitcoin is cheap. “I’m using the price of millions of non-zero addresses as an estimate for Bitcoin valuation, and the chart below shows that the valuation is all the way back to 2013 levels, although the price has only returned to 2020 levels,” he detailed, highlighting:

In other words, bitcoin is cheap.

Bitcoin is cheap – Ethereum could be at the bottom – Markets and prices Bitcoin News
Timmer’s chart showing why bitcoin is cheap. Source: Fidelity

“At the recent low of $17,600, bitcoin is now below my more conservative S-curve model, which is based on the internet adoption curve,” the Fidelity executive added.

Timmer noted that from looking at the growth of the Bitcoin network, it’s clear that “the adoption curve follows a more asymptotic Internet adoption curve rather than a more exponential mobile phone curve.” He continued: “According to Metcalfe’s law, slower network growth suggests more modest price appreciation.”

However, “based on a simple power regression line, the Bitcoin network appears to be intact,” according to the director. “That continued growth of the Bitcoin network, combined with lower prices, means that the value of Bitcoin is decreasing.”

Fidelity’s Director of Global Macro continued to share his outlook on the Ether price, tweeting:

If bitcoin is cheap, then maybe ethereum is cheaper. If ETH is where BTC was four years ago, then the analog below suggests that ethereum may be near the bottom.

Bitcoin is cheap – Ethereum could be at the bottom – Markets and prices Bitcoin News
Timmer’s chart showing Ether may be near the bottom. Source: Fidelity

At the time of writing, bitcoin is trading at $21,584, up 11% over the past seven days, but down 29% over the past 30 days. Ether is trading at $1,217, up 14% over the past seven days, but down 32% over the past 30 days.

What do you think of Fidelity CEO’s Bitcoin and Ether price analysis? Let us know in the comments section below.

Bitcoin is cheap – Ethereum could be at the bottom – Markets and prices Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects, and the intersection between economics and cryptography.




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