Fidelity’s director of global macro shared his price outlook for Bitcoin and Ether. According to his analysis, bitcoin is cheap, but ether could be even cheaper.” Ethereum may be near the bottom,” he added.
Fidelity Director on Bitcoin and Ether Price Outlook
Jurrien Timmer, global macro director of global asset allocation at Fidelity Investments, shared his price analysis of bitcoin and ether in a series of tweets on Friday. timmer is a 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 use the price per millions of non-zero addresses as an estimate for bitcoin’s valuation, and the chart below shows that the valuation is all the way back to 2013 levels, even though the price is only back to 2020 levels,” he elaborated, emphasizing:
In other words, bitcoin is cheap.
“At the recent low of $17,600, bitcoin is below even my more conservative S-curve model based on the Internet adoption curve,” the Fidelity director added.
Timmer noted that when looking at Bitcoin’s network growth, it is clear that “the adoption curve is tracking the more asymptotic Internet adoption curve, not the more exponential cell phone curve.” He continued.” By Metcalfe’s law, slower network growth implies more gradual price increases.”
However, the director opined that “based on a simple power regression line, the bitcoin network appears to be intact.” The continued growth of its bitcoin network, coupled with the decline in price, means that bitcoin’s valuation is declining.”
Fidelity’s global macro director proceeded to share his ether price outlook, tweeting.
If Bitcoin is cheap, perhaps Ethereum is cheap too. Ifthen ETHis at; if BTCis 4 years old, the following analogy suggests that Ethereum may be near the bottom.
At the time of this writing, Bitcoin was trading at $21,584, up 11% over the past 7 days but down 29% over the past 30 days. Ether traded at $1,217, up 14% over the past seven days but down 32% over the past 30 days.
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