Bitcoin is undervalued, fair value price should be $ 15,000, says analyst
Bloomberg cryptocurrency analyst Mike McGlone says that bitcoin is highly undervalued, suggesting that its fair value price should be around $ 15,000.
The price of bitcoin (BTC) has hovered between $ 10,000 and $ 12,400 in recent weeks, often falling sharply after what one expert described as “false” breakouts.
The latest defeat saw BTC collapse more than 8% in just a few days, from over $ 11,000 to $ 10,100. At press time, each bitcoin is trading at $ 10,695, almost 2% higher in the last 24 hours.
McGlone, a senior commodities strategist at Bloomberg, based his arguments on several factors, including the increase in bitcoin’s hash rate, which continues to hit new records, industry media report.
The Bitcoin hashrate continues to rise and recently hit new highs. The addresses used also advance. One of the top metrics for adoption, the 30-day average of Bitcoin addresses is equivalent to the closest price to $ 15,000 when measured on an autoscale since 2017.
According to the latest data from charts.Bitcoin.com, BTC’s seven-day average hashrate rose to over 140 exahash per second (EH / s) this week, an all-time high. On July 28, the figure averaged 127 EH / s, a record at the time.
Hashrate is a measure of the power of computers linked to the Bitcoin blockchain, which determines their ability to produce new coins. The increased hashing power suggests that miners are optimistic about making a profit.
This tends to influence the higher BTC price, given the strong correlation between the two. But the relationship is not exactly that linear, because it is difficult to measure future price changes based only on the hashrate.
Meanwhile, the number of active bitcoin addresses has soared to 991,000, Glassnode data shows, up from 684,000 earlier this year, when the asset’s price averaged around $ 7,700. When active addresses reached nearly 1.1 million on December 23, 2018, bitcoin was trading for $ 14,800, on average.
McGlone has remained bullish on bitcoin throughout its volatile swings, at a point suggesting that this will be the year that major crypto will turn into a digital version of gold, a major store of value.
In his new analysis, he admits that there could be traps that slow down Bitcoin price growth in the future, and that would have to be a reversal of on-chain metrics related to “the hashrate and active addresses.”
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