Monday, November 30, 2020
Home ZYCrypto Bitcoin Is REALLY Worth $15,000 Based On This Key Adoption Metric

Bitcoin Is REALLY Worth $15,000 Based On This Key Adoption Metric


The bitcoin price has ballooned 40% on a year-to-date basis. The OG cryptocurrency has performed particularly well amid the pandemic partly because it acts as a reliable store of value like gold.

However, BTC is desperately clinging to the $10K level at the moment. But according to one bullish analyst, the cryptocurrency is undervalued by an insane margin.

Mike McGlone, Bloomberg’s senior commodity strategist, believes bitcoin’s fair value is $15,000 which the asset fails to reflect. Based on a key adoption metric, BTC is presently trading at roughly 50% below its fair market value.

Bitcoin Price Is Massively Undervalued

At the current price of $10,642.12, bitcoin still has a long way to go to reach its fair value.

In a recent report by Bloomberg, analyst Mike McGlone indicated that bitcoin has more runaway for gains. McGlone based his analysis on the historic highs in bitcoin’s hashing power, and most importantly, bitcoin addresses. Based on the 30-day average of BTC’s addresses, in particular, bitcoin should be worth around $15,000.


“The Bitcoin hash rate continues to increase and recently reached new highs. Also advancing are addresses used. A top metric for adoption, the 30-day average of Bitcoin addresses is equivalent to the price closer to $15,000 when measured on an autoscale basis since 2017.” 

A Strong Argument For A Sustained Bitcoin Bull Run 

The important thing to remember is that, even with the latest pullback, bitcoin’s fundamentals remain stronger than ever. In fact, according to on-chain analyst Willy Woo, the market correction caught most BTC investors with their pants down as there wasn’t the usual on-chain activity that precedes a sell-off. He cites the correlation to stocks as the reason why BTC suddenly took a tumble.

While a deeper pullback in the stock markets could pull the price of bitcoin down in the near-term, the crypto-asset is bound to soon decouple from the legacy markets owing to its bullish fundamentals as an inflation hedge, Woo posited.

Moreover, McGlone, who has remained a bitcoin diehard despite the flagship crypto’s wild rollercoaster ride, suggests that the price of bitcoin will continue increasing in the foreseeable future.

“Our graphic depicts primary on-chain metrics that would need to reverse for Bitcoin to not keep appreciating in price — the hash rate and active addresses.”

Looking ahead to the rest of the year, the robust fundamentals could be the variable that helps kickstart the next bull market — despite bitcoin currently being deep in the bear territory.

Get Daily Crypto News On Facebook | Twitter | Telegram | Instagram


The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Popular Articles

Ethereum DeFi space faces three notable bugs in the span of a Sunday morning

The Ethereum DeFi space is scrambling this Sunday morning as this space has faced a series of bugs.Fortunately, it appears that all three are...

TA: Bitcoin Bulls Keeps Pushing, Why $18.8K is a Key Breakout Zone

Bitcoin price is up over 4% and it broke the $18,500 level against the US Dollar. BTC is currently following a nice bullish path,...

Russia to Recognize Bitcoin as Property With Legal Protection

The Russian prime minister has outlined the government’s plans to amend existing laws to recognize cryptocurrency as property. This means bitcoin owners will have...

Ripple Impersonated by Scammers in a Fraudulent “XRP Incentive Plan” Token Giveaway

Cryptocurrency scammers have been capitalizing on Ripple’s success by rolling out a new XRP giveaway initiative that proved to be fraudulent. Lately, Ripple’s XRP token...

No need to fear the Bitcoin FUD, says Sino Global Capital

In the midst of the crippling price dips earlier this week, cryptocurrency traders seemed beset on all sides by fear, uncertainty, and doubt. However,...

Canadian Public Company Dumps Ethereum and Monero for Bitcoin

A Canadian publicly held company has liquidated all of its ethereum and monero holdings and put all of the proceeds into bitcoin. The company...