According to Fidelity’s Jurrien Timmer, Bitcoin is currently undervalued. Following a drop of over 70%, the benchmark crypto was pushed back up to 2020 levels.
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Bitcoin is showing signs of green at the moment, as it climbs back to 2017’s all-time highs. Bitcoin trades at $21,900 and has made a profit of 1% in the past 24 hours.
Bitcoin at 2013 Value Levels: Most Underpriced in Years
Via Twitter, Timmer wrote about the Crypto Winter and the reasons why BTC’s price is undervalued according to his “conservative” price S-curve model. This price model was based upon the rapid expansion of internet usage and the use of mobile phones.
As seen below, the recent downside Bitcoin price action seems to be following the internet’s demand model which could lead to slower network growth and “modest price appreciation”. If BTC’s price continues to follow this model over the coming years, the cryptocurrency could be priced at around $100,000 by 2030
Timmer believes that Bitcoin will continue to be a demand-driven currency, even though it has seen recent downtrends in price. Even though the Bitcoin price crashed, people still buy BTC.
Experts claim that the value of cryptocurrency reached its 2013 level. The number of BTC addresses that are not zero is also trending downward. In other words, as BTC’s price declines, people appear to be buying it. Timmer stated:
I use the price per millions of non-zero addresses as an estimate for Bitcoin’s valuation, and the chart below shows that valuation is all the way back to 2013 levels, even though price is only back to 2020 levels. Bitcoin is therefore cheap.
Here Are Some Cheap Bitcoin Spells To Use With Ethereum
When Timmer compared BTC’s price current valuation to that of Ethereum, he concluded that the second crypto by market cap could be even “cheaper”. ETH’s price has experienced a “similar” drawdown to that of Bitcoin in 2018.
The market capitalization of the top crypto was around $3,000, but it rose to about $20,000. The former levels would be reaffirmed in the following years.
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The trajectory of Ethereum is shown below. Timmer explained:
Ethereum could be cheaper if Bitcoin is less expensive. If ETH was where BTC four years ago then this analog suggests that Ethereum might be near a bottom.
