ETH’s price could be following a trajectory similar to that of Bitcoin in 2018. Source: Jurrien Timmer via Twitter<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"According to Fidelity\u2019s Jurrien Timmer, Bitcoin is currently undervalued. The benchmark crypto has been pushed back to 2020 levels after losing over 70% of its value in the past months. Related Reading |\u00a0Crypto Traders Lose $280 Million Following Bitcoin\u2019s Break Above $22,000 At the time of writing, Bitcoin has begun showing some green as it makes its way back above its 2017 all-time high levels. The cryptocurrency trades at $21,900 with a 1% profit in the last 24 hours. Bitcoin At 2013 Valuation Levels, Most Underpriced In Years Via Twitter, Timmer wrote about the Crypto Winter and the reasons why BTC\u2019s price is undervalued according to his \u201cconservative\u201d price S-curve model. The expert designed this price model based on the exponential expansion of the internet and mobile phones. As seen below, the recent downside Bitcoin price action seems to be following the internet\u2019s demand model which could lead to slower network growth and \u201cmodest price appreciation\u201d. If BTC\u2019s price continues to follow this model over the coming years, the cryptocurrency could be priced at around $100,000 by 2030 Despite the recent downside price action below its previous all-time high, Timmer claims Bitcoin continues to follow its demand curve. This means that people are still buying BTC despite the price crash. The expert claims the cryptocurrency reached a 2013 valuation level. At the same time, the number of BTC non-zero addresses is trending to the downside. In other words, as BTC\u2019s price declines, people appear to be buying it. Timmer said: I use the price per millions of non-zero addresses as an estimate for Bitcoin\u2019s valuation, and the chart below shows that valuation is all the way back to 2013 levels, even though price is only back to 2020 levels. In other words, Bitcoin is cheap. What A Cheap Bitcoin Spells For Ethereum When Timmer compared BTC\u2019s price current valuation to that of Ethereum, he concluded that the second crypto by market cap could be even \u201ccheaper\u201d. ETH\u2019s price has experienced a \u201csimilar\u201d drawdown to that of Bitcoin in 2018. At that time, the number one crypto by market cap rallied from around $3,000 to $20,000. In subsequent years, it would revisit the former level. Related Reading |\u00a0Solana Glints With 14% 3-Day Rally \u2013 Will SOL Keep On Beaming? As seen below, Ethereum could be following this trajectory. Timmer explained: If Bitcoin is cheap, then perhaps Ethereum is cheaper. If ETH is where BTC was four years ago, then the analog below suggests that Ethereum could be close to a bottom.<\/p>\n","protected":false},"author":535,"featured_media":495229,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[428,1119,1144],"class_list":["post-495228","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin","tag-btc","tag-btcusd"],"acf":[],"yoast_head":"\n
Bitcoin Is Undervalued According To This Expert\u2019s Conservative Model<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n