E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

Dalal Street Corner: Market ends flat even as FII selling nears exhaustion; what should investors do on Friday?

June 30, 2022

Retail Investors Buying the Bitcoin Dip: Analysis

June 30, 2022

Bitcoin Short ETF is Now Second Largest Bitcoin ETF in US

June 30, 2022
Facebook Twitter Instagram
E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
Facebook Twitter Instagram
E Amazings
You are at:Home»Crypto»Bitcoin May Be Cheaper Than it Looks, says Fidelity
Crypto

Bitcoin May Be Cheaper Than it Looks, says Fidelity

Paul EasterBy Paul EasterJune 15, 2022No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter Pinterest WhatsApp Email


Jurrien Timmer – the Director of Global Macro at Fidelity – recently claimed that Bitcoin may be “cheaper than it looks.” An analysis of certain on-chain data metrics suggests that the coin’s true valuation may be significantly higher than its current price.

Valuation VS Price

In a tweet on late Tuesday, Timmer shared a chart of Bitcoin’s price/network ratio, plotted against its USD price. The price/network ratio is calculated by dividing Bitcoin’s price by the total volume transmitted on-chain. This is also sometimes called the NVT ratio.

A high NVT ratio can indicate that an asset is overvalued, whereas a low NVT ratio can mean its undervalued. As the director explained, Bitcoin’s NVT ratio has now returned to levels from the 2013 and 2017 bull markets, whereas the price has only returned to late 2020 levels.

Image
Bitcoin NVT vs Price. Source: Fidelity

“Valuation is often more important than price,” he added.

The director also included a chart of prices plotted against non-zero Bitcoin addresses. The price has now deviated below the average network address growth curve.

Finally, a measure of Bitcoin’s dormancy flow indicated that the asset is technically oversold. Dormancy flow looks at the average number of  “coin-days” destroyed with each transaction – in other words, how long coins are staying dormant before moving again.

The metric has now drifted to its lowest point since 2011, meaning that coins are being sold relatively fast after being transferred.

Fidelity: Bullish During the Bear

Fidelity is known for being highly bullish on Bitcoin long-term. The asset manager recently announced that it would allow customers to include Bitcoin in their 401(k) retirement accounts. However, they quickly came under scrutiny from politicians for the move.

In a report in January, Fidelity argued that Bitcoin is different from all other cryptos. Whereas it views Bitcoin as a monetary good, it finds other assets like Ether more similar to venture investments.

In the short term, however, the crypto market has taken a thorough thrashing – as has the industry surrounding it. Rampant macro fears contributed to a massive Bitcoin selloff over the weekend, causing cascading liquidations for those using Bitcoin-collateralized loans.

One such group facing liquidation fears is Celsius – a crypto lending platform with over $500 million in Bitcoin sitting as collateral for a loan with Oasis. The company has been forced to freeze all customer withdrawals while they hastily locate liquidity to finance the loan, including thousands of Wrapped Bitcoin (WBTC).

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.





Source link

Paul Easter

Related Posts

Retail Investors Buying the Bitcoin Dip: Analysis

By Paul EasterJune 30, 2022

Bitcoin Short ETF is Now Second Largest Bitcoin ETF in US

By Paul EasterJune 30, 2022

Bitcoin Could Climb to $28K by 2022’s End, Deutsche Bank Analysts Suggest

By Paul EasterJune 30, 2022

FTX Reported to Close in on Buying BlockFi for $25 Million: The CEO Denies

By Paul EasterJune 30, 2022
Add A Comment

Comments are closed.

Our Picks

Dalal Street Corner: Market ends flat even as FII selling nears exhaustion; what should investors do on Friday?

By Paul EasterJune 30, 2022

Retail Investors Buying the Bitcoin Dip: Analysis

By Paul EasterJune 30, 2022

Bitcoin Short ETF is Now Second Largest Bitcoin ETF in US

By Paul EasterJune 30, 2022
Recent Posts
  • Dalal Street Corner: Market ends flat even as FII selling nears exhaustion; what should investors do on Friday? June 30, 2022
  • Retail Investors Buying the Bitcoin Dip: Analysis June 30, 2022
  • Bitcoin Short ETF is Now Second Largest Bitcoin ETF in US June 30, 2022
  • Indian and Offshore Gaming Sites Are in the Same Boat, Experts Remind June 30, 2022
  • Bitcoin Could Climb to $28K by 2022’s End, Deutsche Bank Analysts Suggest June 30, 2022
  • How to Choose the Right Company Car for Your Business Needs June 30, 2022
  • Gold Price Today: Weaker Rupee to hold yellow metal slide domestically, amid strengthening Dollar; analyst suggests strategy June 30, 2022
Archives
  • June 2022
Facebook Twitter Instagram Pinterest TikTok
  • Home
© 2022 E Amazings - All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.