Bitcoin Is Undervalued According To This Expert’s Conservative Model


as For Jurrien Timmer of Fidelity, Bitcoin is currently undervalued. The benchmark cryptocurrency has returned to 2020 levels after losing more than 70% of its value in the past months.

Related reading | Cryptocurrency Traders Lose $280 Million After Bitcoin Breaks Over $22,000

At the time of writing, Bitcoin is starting to show some green as it makes its way back above all-time highs of 2017. The cryptocurrency is trading at $21,900 with a 1% gain in the last 24 hours.

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BTC price trends to the downside on the 4-hour chart, but is seeing some relief in the lower time frames. source: BTCUSD TradingView

Bitcoin at valuation levels of 2013, lowest price in years

Via Twitter, Timmer wrote about Crypto Winter and the reasons why BTC is undervalued according to his “conservative” price curve model. The expert designed this price model based on the massive expansion of the internet and mobile phones.

As seen below, the recent downward movement of the bitcoin price appears to be following an internet demand model that could lead to slower network growth and a “modest price hike.” If the price of BTC continues to follow this pattern over the coming years, the cryptocurrency could be priced at around $100,000 by 2030

Despite the recent bearish price movement below previous all-time highs, Timmer claims that Bitcoin continues to follow its own demand curve. This means that people are still buying bitcoin despite the price crash.

The expert claims that the cryptocurrency has reached the rating level of 2013. Meanwhile, the number of non-zero BTC addresses is trending to the downside. In other words, as the price of BTC drops, people seem to be buying it. Timer said:

I use the price per millions of non-zero addresses as an estimate of Bitcoin’s valuation, and the chart below shows that the valuation goes back to 2013 levels, even though the price is only back to 2020 levels. In other words, bitcoin is cheap.

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BTC demand curve compared to the adoption of Internet and mobile technologies. Source: Jurrien Timmer via Twitter

What is the cheapest bitcoin to deal with ethereum

When Timmer compared the current BTC price valuation with that of Ethereum, he concluded that the second cryptocurrency by market cap could be “cheaper.” The price of ETH saw a “similar” drop to the price of Bitcoin in 2018.

At the time, the number one cryptocurrency by market capitalization rose from around $3,000 to $20,000. In subsequent years, it will reconsider the previous level.

Related reading | Solana shines with 14% in 3-day rally – will Solana continue to run?

As shown below, Ethereum can follow this path. Timer explained:

If Bitcoin is cheap, Ethereum might be cheaper. If ETH was where BTC was four years ago, the analogue below suggests that Ethereum could be near the bottom.

Bitcoin BTC BTCUSD Ethereum
ETH price could follow a similar trajectory to Bitcoin price in 2018. Source: Jurrien Timmer via Twitter





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