Jurrien Timmer, director of Global Macro at the global asset allocation unit of Fidelity Investments, discussed his analysis of the Bitcoin and Ether values in a series of tweets that he posted on Friday.
Timmer provided an explanation for the current low cryptocurrency market and asserted that the valuation of the cryptocurrency has returned to levels seen in 2013 based on the price per million non-zero addresses, which is how the value of bitcoin is calculated. This is despite the fact that the price has really only realized levels seen in 2020. The chart that follows demonstrates this point.
Comparing Value to Cost
His more conservative S-curve model is based on the adoption curve of the Internet, and he explained that even at its latest low of $17,600, Bitcoin is already lower than his model.
Timmer finds that the growth of the Bitcoin network exhibits characteristics more typical of the asymptotic Internet adoption curve than of the exponential growth seen in mobile phone use. However, Metcalfe's Law states that prices will rise more gradually in tandem with slower network growth.
"based on a simple power regression line, Bitcoin's network appears to remain intact," the director argues, nevertheless. As the Bitcoin network grows and prices continue to fall, Bitcoin's worth decreases.
The End of Ether?
The director of Fidelity's global macro division also shared his forecast for Ether's value on Twitter.
The analogy that was drawn suggests that if Ethereum is where Bitcoin was four years ago, then it is maybe on the verge of hitting rock bottom.
What Kind of Relationship Exists Between Bitcoin and Gold?
Timmer investigated the association between Bitcoin and Gold in order to have a better understanding of the market sentiments prevailing in the bearish period of the cryptocurrency. If Bitcoin and Gold were to be compared side by side, the CEO of Fidelity believes that it would be extremely important to pay attention to the ratio between the two assets. He continued by stating that the most recent sell-off was responsible for creating the most oversold conditions that have been seen in the past few years.
Bitcoin's price is $21,584 at the time of this writing, which represents an increase of 11% over the previous seven days but a decrease of 29% over the preceding 30.
Ether's price is currently at $1,217, having increased by 14% over the course of the previ