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Ethereum Nearing underneath While Bitcoin Price Is Cheap: Fidelity Analyst

Fidelitys Director Comments On The BTC and ETH Price

Bitcoin and the entire cryptocurrency market have observed a significant run-up in the last 45 days because the start of July 2022.

In some tweets on Friday, Jurrien Timmer, director of Global Macro, in the global asset allocation portion of Fidelity Investments, discussed his analysis of the Bitcoin and Ether prices.

Timmer explained the reduced price of Bitcoin and asserted that the purchase price per million non-zero addresses, that is the way the value of bitcoin is calculated, demonstrates valuation has returned to 2013 levels, regardless of the price having only reached 2020 levels. That is shown in the chart below.

Valuation vs. Price

He further explained that even at its recent low of $17,600, Bitcoin is currently reduced comparison to his more conservative S-curve model, that is in line with the Internet adoption curve.

The adoption curve for Bitcoin is actually following more asymptotic Internet adoption curve as opposed to the more exponential cellular phone curve, in accordance with Timmers analysis of the networks expansion. However, in accordance with Metcalfes Law, slower network growth indicates a far more moderate price increase.

However, based on the director, predicated on a straightforward power regression line, Bitcoins network is apparently intact. The worthiness of Bitcoin is declining due to the networks ongoing expansion and falling pricing.

Ether Nearing Bottom?

The Global Macro director of Fidelity also tweeted about his expectations for the Ether price.

Eye on digital currencies: If you truly believe in Bitcoins adoption-curve thesis (i.e. that the network will continue steadily to expand consistent with previous S-curves), then it’s reasonable to see Bitcoin as cheap at these levels.

Jurrien Timmer (@TimmerFidelity) August 17, 2022

Based on the parallel drawn, if Ethereum is where Bitcoin was four years back, it might be going to bottom out.

JUST HOW DO Bitcoin and Gold Correlate?

Timmer dug in to the Bitcoin and Gold correlation to comprehend the marketplace sentiments of the cryptocurrency in the bearish phase. The top of Fidelity explains that it might be crucial to consider the Bitcoin/Gold ratio if Bitcoin and Gold were to be placed hand and hand. He continued by saying that probably the most oversold conditions recently were developed by the newest sell-off.

During writing, Bitcoin reaches $21,584 up 11% during the last a week but down by 29% on the previous 30.

Meanwhile, Ether reaches $1,217, up 14% in the last week but down by 32% within the last 30.

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