A senior executive at financial services giant Fidelity Investments believes Bitcoin (BTC) is currently a bargain.
Jurrien Timmer, director of global macro at Fidelity He says that on the assumption that Bitcoin’s price will rise as its network grows, flagship crypto activity looks “cheap”.
“If you believe in the Bitcoin adoption curve thesis (that is, the network will continue to expand in line with previous S curves), then it is reasonable to consider Bitcoin as low-cost at these levels.”
According to the macro expert, Bitcoin’s price is under the actual and expected growth of its network.
“For me, the main nuance is the slope of the adoption curve. Whether we use the cell phone curve or the internet curve as a proxy, Bitcoin’s price is below the actual and expected network growth curve. That curve provides a fundamental anchor for Bitcoin’s price. “
Timmer previously explained that Bitcoin’s adoption rate is likely to mirror that of mobile phones or Internet technology.
Using the analogy of Bitcoin as digital gold, Timmer He says that the crypto king was massively oversold during the recent market downturn and deviated from the trend when the two are compared side by side.
“If Bitcoin is gold’s early little brother, it makes sense to look at Bitcoin priced in gold (ie, Bitcoin’s beta on gold). Technically, the recent sell-off produced the largest oversold condition in years (measured as the number of standard deviations from the trend). “
The macro expert also says that during the cryptocurrency crisis, the percentage of Bitcoin held for less than three months (short-term holders) remains relatively unchanged while the percentage of Bitcoin held for over 10 years (long-term holders) Is increasing.
“Who is buying Bitcoin these days? Apparently not tourists (ie short term holders). The percentage of Bitcoin held for less than three months has barely moved in recent times.
“But the number of HODLers continues to grow. The percentage of Bitcoin held for at least 10 years is now 13%.
Don’t miss a beat – sign up to receive cryptographic email alerts sent directly to your inbox
Check out the price action
Follow us on TwitterFacebook and Telegram
Navigate Hodl’s daily mix
 
Disclaimer: The views expressed by The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any losses you may incur are your own responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock / Maria Starus