Fidelity’s Jurian Timmer Claims The World’s Largest Cryptocurrency May Be Seriously Undervalued
one in recent threadJurian Timmer, director of global macros at investment giant Fidelity, has suggested that bitcoin may actually be cheaper than it looks.
The analyst noted that the price/network ratio is back to 2017 levels, despite the fact that the cryptocurrency is trading at its lowest level since December 2020.
According to Timmer, this may indicate that bitcoin is currently undervalued critically.
The largest cryptocurrency is now priced below the network curve, which means its fundamentals remain strong.
The unit-adjusted dormancy flow indicator, which shows the ratio of current market cap to annual dormancy value, has fallen to its lowest level since 2011.
At press time, bitcoin is trading at $20,636 after the recent recovery pan flashed.
The flagship cryptocurrency is now down almost 70% from its all-time high, which was recorded in early November.If bitcoin moves below the ironclad $20,000 support, some analysts are speculating that it could be too low. Chartist Peter Brandt recently said that bitcoin could potentially drop to $12,000 if the bears break above the above support. According to the trader, the cryptocurrency will struggle to achieve a new price peak until 2024.
The Guggenheim’s Scott Minrad says bitcoin could drop below $8,000.
When it rains, it pours
Aside from the macro headwinds following the Terra burst, the cryptocurrency industry is currently going through a major crisis.
Major lending platform Celsius also appears uneducated after abruptly suspending all withdrawals earlier this week.
Rumors about the bankruptcy of leading crypto hedge fund Three Arrows Capital (3AC) have added even more fuel to the fire, and it could be the next domino to fall.
Meanwhile, Coinbase recently fired a fifth of its employees to prepare for a brutal crypto winter.