Bitcoin may be cheaper than it looks, according to Fidelity.

Bitcoin may be cheaper than it looks, according to Fidelity.

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Answer Bitcoin may be cheaper than it looks, according to Fidelity.

Jurrien Timmer, director of Global Macro at Fidelity, stated that Bitcoin may be cheaper than it looks.

Some analyzes indicate that the true valuation of a currency may be much higher than its current price in the sense that it is undervalued.

value for price:

in Tweet Recently published, Timmer shared a chart of the bitcoin network/price ratio, to its dollar price.

The price/network ratio is calculated by dividing the price of bitcoin by the total volume transmitted through the network.

This equation is called the NVT ratio.

A high NVT can indicate an asset is overvalued, while a low NVT can mean an asset is undervalued.

Read:Tether’s lawyer reveals the company’s reserves of cash and cash equivalents

As Timmer explained, Bitcoin’s NVT ratio has now returned to levels seen in the 2013 and 2017 bull markets, while the price has only returned to late 2020 levels.

He added:

Evaluation is often more important than price.

Timmer has included a price chart plotted against non-zero Bitcoin addresses.

The graphic shows the deviation of the price from the average network address growth curve, which means that the NVT is low, i.e. the asset is undervalued.

In a January report, Fidelity argued that Bitcoin is different from all other cryptocurrencies.

While it views Bitcoin as a cash commodity, it finds other assets such as Ethereum more similar to other venture investments.

In the short term, the cryptocurrency market has come under all-out attack.

The rampant macro fears also contributed to a massive bitcoin sell-off over the weekend, causing back-to-back liquidations of those using bitcoin-secured loans.

Read:Will Twitter integrate BTC as a payment method on its platform soon?

Read also:

Bitcoin Fear and Greed Index Drops to 2019 Levels…Details Here

The CEO of “MicroStrategy” clarifies the situation of the company after the Bitcoin drop to the levels of 21 thousand dollars

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