Jurrien Timmer, global macro director at asset manager Fidelity Investments, described $20,000 in Bitcoin as “cheap” in a recent Twitter thread. While fears persist that the crypto markets may face further declines this year, some think current Bitcoin price levels present an opportunity not seen in years.
Considering the price against Bitcoin wallets with surplus balances, Timmer concluded that TC/USD is back to where it was at the peak of the 2013 bull market. At that time, BTC/USD, Mt. Gox had managed to hit around $1,130 a few years before going into consolidation thanks to the stock market crash. Timmer said:
"As an estimate for Bitcoin's valuation, I use the price ratio of wallets with a balance greater than zero. The bottom line is the chart below shows that valuation has rebounded back to 2013 levels even though the price only rebounded to 2020 levels."
While Jurrien Timmer says that the price of Bitcoin is cheap according to the current market conditions, he thinks that Ethereum is much cheaper. James Lavish, a former hedge fund manager and macroeconomics expert, expects bigger moves for Bitcoin and ETH.
“At $20,000 BTC, if you believe the downside risk is $10,000 and the upside potential is $250,000, these prices have 0.5x down and 12.5x up. This indicates a 25 to 1 Risk Reward profile. does."