Although there are many investors anticipating Bitcoin will fall once again, citing the global uncertainty that is epitomized by the Dow Jones’ record 3,000-point loss on Monday, there are some reasons to believe the cryptocurrency may soon mount a recovery.
Prominent cryptocurrency analyst Trajan recently shared three reasons why being long Bitcoin is a “decent bet” at the moment.
– S&P Futures hit limit bound up
– Funding paying you almost 0.7%/day to long
– Price at $5k
Seems like a decent bet to me
— Trajan (@SplitCapital) March 17, 2020
There are other reasons to be bullish on Bitcoin.
Bitcoin became fundamentally undervalued for the first time since the 2018 bottom, with two indicators from digital asset manager Charles Edwards — daily active users and transaction value per Metcalfe’s law — now trending above the price of BTC.
This has been backed up by Charlie Morris of ByteTree, who on Thursday remarked that Bitcoin’s fair value, derived from the on-chain activity metrics and how many coins there are in existence, then sat at $6,400, far above BTC’s current (as of the time of this article’s writing) price of $5,300.
Bitcoin is currently undervalued for the first time since Dec 2018 bottom at $3500.
Price dipped below both DAA(Daily active users) Fair price and TV (Transaction value) Fair price per Metcalfe’s law.
— Anondran (@AnondranCrypto) March 14, 2020
Furthermore, on March 16th, Bitcoin infrastructure startup Bakkt announced that it has just completed a $300 million USD Series B fundraising round, garnering the support of the Intercontinental Exchange (owner of the New York Stock Exchange), Microsoft’s venture capital arm M12, and Boston Consulting Group. These companies participated in the firm’s Series A round, which saw Starbucks chip in.
So while cryptocurrencies may be losing their value at a rapid clip, it is clear that big-name investors see Bitcoin and its ilk as anything but dead.
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Published at Tue, 17 Mar 2020 20:00:22 +0000