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Fidelity Chief Jurrien Timmer recently took to his Twitter page to share his thoughts on the value of Bitcoin.
The Director of Global Macro at Fidelity Investments, Jurrien Timmer, considers Bitcoin (BTC) cheap given its current levels. Timmer recently took to his Twitter page to share his thoughts on the subject as he explained what prompted him to make that statement.
Bitcoin Is Cheap, But How?
In the long thread, Timmer noted that the price-to-network ratio of BTC is back at the level it was as of 2014. And that is despite the fact that the network continues to grow in tandem with the price regression curve. Essentially, this implies that BTC is currently valued way lower than it should be.
The renowned analyst also mentioned the recent spate of sell-offs, which he claims is responsible for producing ” the biggest oversold condition” in a long time. However, he also talked about recovery as well. Recall that since the start of July, Bitcoin price and virtually that of every other asset in the broader crypto market have been in an uptrend.
Interestingly though, Timmer believes that Bitcoin’s recovery should only be linked to HODLers rather than short-term traders. As of press time, Bitcoin is trading at the $23,480 mark, per CoinMarketCap data. And this follows after several failed attempts by the bulls to break beyond the $24,000 mark.
There has been an age-long comparison of Ethereum (ETH) with Bitcoin, although that may not be surprising. Especially considering how Ethereum is the closest thing to Bitcoin since the leading cryptocurrency came to be.
So, in that light, Timmer also weighed in on the ETH price and how much the Ethereum network has grown. He claims that though the Ethereum network has grown at a significantly faster rate than Bitcoin’s, ETH also hasn’t got the amount of reward that is commensurate with its higher price-to-network ratio. But that may be because it is perceived as less decentralized and more abundant in availability.
The analyst then further suggests that the upcoming Merge may turn out to be the game changer for Ethereum. He wrote:
“Perhaps some of that will change as ETH goes into its merge.”
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