• BTC Dominance: %
XBT.Market
Advertisement
  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us
No Result
View All Result
XBT.Market
No Result
View All Result
Home Bitcoin

Bitcoin ‘cheap’ at $20K as BTC price to wallet ratio mimics 2013

Jon Hartney by Jon Hartney
July 9, 2022
in Bitcoin, Blockchain, Business, Market
0
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Fidelity Investments’ Jurrien Timmer stays upbeat on Bitcoin network strength, while another commentator flags a “compelling” risk/reward ratio at $20,000.

Bitcoin (BTC) has not been this good value since it cost $1,130, one analyst argues as BTC offers a “compelling” risk/reward ratio.

In a Twitter thread on July 7, Jurrien Timmer, director of global macro at asset manager Fidelity Investments, simply described $20,000 Bitcoin as “cheap.”

Related articles

Bitcoin derivatives data shows room for BTC price to move higher this week

January 23, 2023

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

January 22, 2023

Timmer: “In other words, Bitcoin is cheap”

While fears that crypto markets could suffer further drawdowns this year remain, some believe that current Bitcoin price levels offer the kind of value for money not seen in years.

Analyzing the BTC price versus the number of non-zero addresses — wallets with a positive balance — Timmer concluded that BTC/USD is now back at where it was at the peak of the 2013 bull market.

At the time, BTC/USD managed to hit around $1,130 before spending several years consolidating thanks to the demise of exchange Mt. Gox.

“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,” Timmer explained.

“In other words, Bitcoin is cheap.”

The Bitcoin price/network ratio is not the only encouraging sign when it comes to Bitcoin’s growth despite the current bear market. Timmer added that Bitcoin adoption still reflects the rise of the internet, and that the Bitcoin network “appears to be intact” when it comes to its growth cycles.

When it comes to price/network ratio, it is further not just Bitcoin showing signs of solid investment potential.

“If Bitcoin is cheap, then perhaps Ethereum is cheaper,” he wrote.

“If ETH is where BTC was four years ago, then the analog below suggests that Ethereum could be close to a bottom.”

Bitcoin price/network ratio vs. BTC/USD chart. Source: Jurrien Timmer/ Twitter

“0.5X downside, 12X upside”

$20,000 BTC should meanwhile still provide a “compelling” investment case even to those who believe that a 50% price dip is still possible.

Related: This ‘biblical’ Bitcoin pattern suggests BTC price can rise 30% by October

That was the conclusion of James Lavish, a former hedge fund manager turned macroeconomics expert, who drew attention to the simple maths involved in a Bitcoin bet in today’s environment.

“At $20K BTC, if you believe that the downside risk is $10K and the upside potential is $250K, then at these prices there is a .5X downside and 12.5X upside. This is a 25 to 1 Reward to Risk profile,” he told Twitter followers.

“This is compelling.”

While hard to imagine this year, a $250,000 price tag for BTC/USD is in fact fairly modest by historical standards of price prediction.

Among its adherents is billionaire Tim Draper, who nonetheless initially insisted that Bitcoin would cost a quarter of a million dollars by 2022.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Read Entire Article
Tags: CointelegraphCryptocurrencyInvestmentMining Bitcoin
Share76Tweet47

Related Posts

Bitcoin derivatives data shows room for BTC price to move higher this week

by Jon Hartney
January 23, 2023
0

BTC options data suggest that the Bitcoin price rally still has legs, even with wider economic concerns growing and the

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

by Jon Hartney
January 22, 2023
0

BTC could take a break from its sharp rally and if BTC price bounces off underlying support, APE, MANA, AAVE...

Genesis bankruptcy case scheduled for first hearing

by Jon Hartney
January 22, 2023
0

The first hearing in Genesis Capital's bankruptcy case will be held on January 23, according to court filings

Terra lending protocol Mars to launch mainnet

by Jon Hartney
January 22, 2023
0

The Mars Hub will launch an independent Cosmos application chain and issue MARS to users who hold the token during...

Central African Republic eyes legal framework for crypto adoption

by Jon Hartney
January 22, 2023
0

A 15-member committee is tasked with working on a legal framework that will allow cryptocurrencies to operate in

Load More
  • Trending
  • Comments
  • Latest

Ethereum Classic gets ‘endorsement’ from Vitalik Buterin, but ETC price still risks 50% crash

July 27, 2022

Critique on Helium’s $6.5K monthly revenue causes a stir

July 28, 2022

All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

July 7, 2022

Cardano Vasil hard fork hit with another delay for several weeks

July 29, 2022

All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

0

Crypto owners banned from working on US Government crypto policies

0

Korean startup Uprise lost $20M shorting LUNC

0

Ethereum testnet Merge mostly successful — ‘Hiccups will not delay the Merge.’

0

Bitcoin derivatives data shows room for BTC price to move higher this week

January 23, 2023

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

January 22, 2023

Genesis bankruptcy case scheduled for first hearing

January 22, 2023

Terra lending protocol Mars to launch mainnet

January 22, 2023

XBT.Market

This website is an automated news feed powered by the Nebulome cloud system. The site is made possible by YYC TECH Consulting and Alberta Digital Mining Company. As a team with major crypto and bitcoin enthusiasm, we have curated major sources of news, trading and financial data to bring you, our viewer, an unbiased source of truth.

Recent Posts

  • Bitcoin derivatives data shows room for BTC price to move higher this week January 23, 2023
  • Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher January 22, 2023
  • Genesis bankruptcy case scheduled for first hearing January 22, 2023
  • Terra lending protocol Mars to launch mainnet January 22, 2023
  • Central African Republic eyes legal framework for crypto adoption January 22, 2023

News Categories

  • Bitcoin
  • Blockchain
  • Business
  • Market

Tags

bitcoinMagzine Cointelegraph Cryptocurrency insidebitcoins Investment Mining Bitcoin NewsBTC

Quicklinks

  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us

© 2022 Xbt.Market - Powered by YYC Tech Consulting & ADMCO.

No Result
View All Result
  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us

© 2022 Xbt.Market by Nebulome.

  • bitcoinBitcoin(BTC)$22,905.00-1.70%
  • ethereumEthereum(ETH)$1,645.91-2.09%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.00-0.07%
  • binancecoinBNB(BNB)$326.43-1.76%
  • usd-coinUSD Coin(USDC)$1.00-0.04%
  • rippleXRP(XRP)$0.396690-1.23%
  • Binance USDBinance USD(BUSD)$1.00-0.14%
  • cardanoCardano(ADA)$0.390701-2.17%
  • dogecoinDogecoin(DOGE)$0.089891-3.13%
  • matic-networkPolygon(MATIC)$1.280.47%
  • OKBOKB(OKB)$44.78-2.61%
  • SolanaSolana(SOL)$22.95-4.20%
  • Lido Staked EtherLido Staked Ether(STETH)$1,642.73-2.21%
  • polkadotPolkadot(DOT)$6.75-3.18%
  • Shiba InuShiba Inu(SHIB)$0.000013-6.50%
  • litecoinLitecoin(LTC)$98.50-2.63%
  • AvalancheAvalanche(AVAX)$19.98-3.97%
  • tronTRON(TRX)$0.0667300.86%
  • UniswapUniswap(UNI)$6.77-3.19%
  • daiDai(DAI)$1.00-0.07%
  • cosmosCosmos Hub(ATOM)$15.090.04%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$22,905.00-1.52%
  • chainlinkChainlink(LINK)$7.20-0.19%
  • ToncoinToncoin(TON)$2.29-3.55%
  • ethereum-classicEthereum Classic(ETC)$22.56-2.57%
  • leo-tokenLEO Token(LEO)$3.35-0.37%
  • moneroMonero(XMR)$166.97-0.61%
  • bitcoin-cashBitcoin Cash(BCH)$131.17-3.31%
  • Aerarium FiAerarium Fi(AERA)$7.14-13.09%
  • AptosAptos(APT)$14.65-9.75%
  • stellarStellar(XLM)$0.090589-1.75%
  • Lido DAOLido DAO(LDO)$2.827.34%
  • NEAR ProtocolNEAR Protocol(NEAR)$2.583.67%
  • CronosCronos(CRO)$0.083350-0.58%
  • ApeCoinApeCoin(APE)$5.70-5.63%
  • filecoinFilecoin(FIL)$5.37-3.75%
  • algorandAlgorand(ALGO)$0.2823800.55%
  • QuantQuant(QNT)$138.68-2.16%
  • HederaHedera(HBAR)$0.074075-0.12%
  • vechainVeChain(VET)$0.025648-3.76%
  • Internet ComputerInternet Computer(ICP)$5.66-3.64%
  • The GraphThe Graph(GRT)$0.178999-9.93%
  • The SandboxThe Sandbox(SAND)$0.83-7.73%
  • FantomFantom(FTM)$0.51-12.68%
  • Axie InfinityAxie Infinity(AXS)$11.921.58%
  • decentralandDecentraland(MANA)$0.75-6.23%
  • AaveAave(AAVE)$86.25-2.69%
  • eosEOS(EOS)$1.08-3.56%
  • FlowFlow(FLOW)$1.11-7.62%
  • MultiversXMultiversX(EGLD)$45.93-4.56%
  • theta-tokenTheta Network(THETA)$1.14-5.23%
  • tezosTezos(XTZ)$1.21-2.32%
  • Terra Luna ClassicTerra Luna Classic(LUNC)$0.000180-2.81%
  • FraxFrax(FRAX)$1.00-0.28%
  • Frax ShareFrax Share(FXS)$13.607.88%
  • paxos-standardPax Dollar(USDP)$0.99-0.60%
  • true-usdTrueUSD(TUSD)$1.00-0.11%
  • Rocket PoolRocket Pool(RPL)$47.9513.11%
  • huobi-tokenHuobi(HT)$5.33-6.15%
  • Curve DAOCurve DAO(CRV)$1.131.23%
  • kucoin-sharesKuCoin(KCS)$8.63-1.59%
  • havvenSynthetix Network(SNX)$2.67-9.69%
  • ChilizChiliz(CHZ)$0.153918-6.63%
  • bitcoin-cash-svBitcoin SV(BSV)$42.70-2.07%
  • ImmutableXImmutableX(IMX)$1.01-11.82%
  • PancakeSwapPancakeSwap(CAKE)$4.621.01%
  • eCasheCash(XEC)$0.000037-2.81%
  • USDDUSDD(USDD)$0.99-0.31%
  • BitTorrentBitTorrent(BTT)$0.000001-1.65%
  • dashDash(DASH)$63.62-4.23%
  • makerMaker(MKR)$774.09-4.22%
  • Mina ProtocolMina Protocol(MINA)$0.82-5.73%
  • BitDAOBitDAO(BIT)$0.59-1.62%
  • iotaIOTA(MIOTA)$0.244586-3.39%
  • KlaytnKlaytn(KLAY)$0.208392-4.03%
  • GateGate(GT)$4.43-0.87%
  • neoNEO(NEO)$9.10-1.25%
  • Trust WalletTrust Wallet(TWT)$1.53-4.79%
  • OKCOKC(OKT)$33.513.12%
  • OptimismOptimism(OP)$2.73-12.01%
  • ArweaveArweave(AR)$11.73-9.84%
  • OsmosisOsmosis(OSMO)$1.110.31%
  • cUSDCcUSDC(CUSDC)$0.0227490.01%
  • zcashZcash(ZEC)$44.90-4.37%
  • gemini-dollarGemini Dollar(GUSD)$1.00-0.06%
  • THORChainTHORChain(RUNE)$1.88-4.31%
  • GMXGMX(GMX)$66.16-6.71%
  • singularitynetSingularityNET(AGIX)$0.468366-27.03%
  • cDAIcDAI(CDAI)$0.022155-0.03%
  • Baby Doge CoinBaby Doge Coin(BABYDOGE)$0.0000000.38%
  • Tokenize XchangeTokenize Xchange(TKX)$6.80-0.46%
  • RenderRender(RNDR)$1.72-18.53%
  • RadixRadix(XRD)$0.050235-0.46%
  • PAX GoldPAX Gold(PAXG)$1,865.940.16%
  • Fetch.aiFetch.ai(FET)$0.477694-18.13%
  • enjincoinEnjin Coin(ENJ)$0.498389-4.73%
  • zilliqaZilliqa(ZIL)$0.030331-2.24%
  • Convex FinanceConvex Finance(CVX)$6.32-5.48%
  • cETHcETH(CETH)$33.20-1.81%