Fidelity’s important analyst addresses the boom and bust Bitcoin days. Check out the latest reports about the matter below.
Bitcoin boom and bust days
The macro analyst at a $3.3 trillion investment firm says the days of Bitcoin (BTC) skyrocketing over 1,000% and then crashing 80% are over.
On Twitter, the Fidelity executive Jurrien Timmer tells his 107,700 followers that the wild price discoveries that BTC went through during its previous bull markets are likely a thing of the past as institutional investors adopt the leading crypto asset.
“Until recently, Bitcoin would often overshoot its intrinsic value to the upside during bull markets and to the downside during bear markets. It was a momentum game with little to no resistance, until the trend reached exhaustion.”
Timmer also made sure to explain that Bitcoin is now following a demand curve based on network growth or the rise in the number of users flocking into BTC.
“Is the efficient market hypothesis replacing the go-go price discovery of yesteryear? The chart [below] shows Bitcoin’s fundamentals. The supply curve is dictated by the S2F model (stock-to-flow), and the demand curve is driven by network growth (Metcalfe’s Law)…”
He also continued and explained the following:
In recent months the price of Bitcoin has stopped tracking the S2F model and has instead hugged the pink line (demand model). That makes sense to me.”
Regarding the price of Bitcoin today, at the moment of writing this article, BTC is trading in the red and the king coin is priced at $38,448.
Next Bitcoin bottomIt’s been revealed that there is a popular crypto analyst who said that he’s closely following one indicator that has consistently marked the bottom for Bitcoin (BTC) since 2017.
In a new video, crypto strategist Kevin Svenson said that we should keep a close eye on the weekly Coinbase volume of Bitcoin, which he says has been an accurate indicator of trend reversals.
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