Fidelity Macro Anlayst Says Bitcoin (BTC) Is ‘Attractively Valued’ at Current Price – Here’s Why

A widely followed macro analyst from the financial services giant Fidelity says that Bitcoin has reached a price level that makes it “attractively valuable”.

Fidelity analyst Jurrien Timmer tells his 114,000 Twitter followers that he looks at the bitcoin-gold ratio, which determines the price of both assets of value against each other.

“First is the bitcoin/gold ratio, which I see as a measure of how this ambitious digital store of value is performing relative to the ‘original’ store of value.

The BTC/Gold ratio now rests on major support, in the form of the 2017 high as well as the 2021 low. Meanwhile, the curving Bollinger Band shows that the ratio is now at 2 standard deviations below the trend, the level that contained the last three dips “.

source: Gorin Timer / Twitter

The analyst also monitors Bitcoin idle flow, which measures spending patterns in the market by tracking the average number of days that each circulating coin has been idle. Timmer notes that the scale is currently at levels not seen since 2018.

“Next is dormancy flow, which roughly speaks is a measure of strong hands versus weak hands. Modified dormancy flow from Glassnode is now at its lowest since 2014 and 2018 lows.”

source: Gorin Timer / Twitter

Timmer shares a model that compares the adoption of Bitcoin with the rise of the Internet and mobile phones. Assuming that BTC and cryptocurrencies are adopted at the same level as the internet and mobile phones, Bitcoin is now undervalued, according to the metric.

“Next is the valuation. With the current swoon at $25,000, bitcoin is now below the price that both the mobile-based S-curve model and the more conservative internet adoption model are currently suggesting.”

source: Gorin Timer / Twitter

Fidelity Analyst Says He finds it worth noting that despite a significant Bitcoin price correction from all-time highs, HODLers seem unfazed. His models show that the number of bitcoins held for more than 10 years is stable at 13%.

source: Gorin Timer / Twitter

Timmer says that given all available metrics, Bitcoin is currently at a historically attractive price, as well as strong support. However, the only variable is the stock market, which he says has a clear impact on the price movement of BTC.

“All of the above tells me that Bitcoin is not only in strong support but also has attractive value. The only caveat is that Bitcoin-sensitive stocks need to confirm any Bitcoin recovery.

They were the canary in the coal mine before the Bitcoin crash a few weeks ago, and they will need to show strength in the rebound for me to have confidence in Bitcoin’s upside potential. “

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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making any high-risk investments in bitcoin, cryptocurrency or digital assets. Please be aware that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrency or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

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