Why A “Boring” Bitcoin Could Be A Good Thing

2022-4-22 02:00

The current bitcoin trend can be described as “boring” by a lot of folks in the market. However, it is good to look at what this would mean in a space like the crypto industry that is used to fast-moving prices and quick-changing momentum. While the word “boring” may sound bad to investors who are used to these characteristics, Director of Global Macro at Fidelity, Jurrien Timmer, explains why this could inherently be a good thing for the digital asset.

Draw In Institutional Investors

The need for institutional investors in bitcoin cannot be overstated. For the digital asset to get to some of the forecasted values, institutional investors moving into the market has become a necessity. But will these institutional investors want to move into a highly unpredictable asset such as bitcoin?

Related Reading | Halfway To The Halving: What This Means For Bitcoin

In his recent Twitter thread, Timmer explained that a “boring” bitcoin is important if institutional adoption is to be expected. Pointing to the S2F model created by the infamous Plan B, he explains that bitcoin has closely followed this model. However, there is a deviation that is starting to take place.

The Director explained that instead of continuing to track the S2F model, BTC had instead started to follow the pink line which marked demand in the chart shared. This meant that as effective as Plan B’s model has been in the past, it seems bitcoin is cutting out a new trend for itself and that is now entirely driven by the demand. 

“So, in a more efficient two-way market, Bitcoin should deviate around that pink line, up and to the right,” Timmer explained.

BTC sticking close to pink demand line | Source: Twitter Bitcoin Behaving Like A Traditional Asset

Now, one of the great gospels of bitcoin is how different the digital asset is from traditional risk assets. Nevertheless, as more time has passed and adoption is growing, it is beginning to behave more like a traditional risk asset. As more understanding comes, the investors who are purchasing the asset move from simply a price standpoint and move towards more efficient accumulation.

Timmer notes in his Twitter thread that institutional investors have likely come up with their own models which will help them know when a good time to buy bitcoin is. This could help them map out if they can get a 1.5x or 3x return from buying at a particular price.

BTC trading in the mid-$42,000s | Source: BTCUSD on TradingView.com

“For instance, If the demand model says that Bitcoin’s intrinsic value is $50k today and $100k two years from now (my thesis), then at $30k Bitcoin is going to look a lot better than at $70k,” he noted. Adding that “Price is what you pay but value is what you get.”

Related Reading | How Bitcoin Futures Premiums Exhibit Signs Of Market Exhaustion

Timmer closes out his thread explaining that getting the demand curve right would be very important “If indeed price starts to move more closely around an upwardly sloping demand curve.”

Featured image from MarketWatch, chart from TradingView.com origin »

Goodomy (GOOD) на Currencies.ru

$ 0.0002667 (-0.99%)
Объем 24H $0
Изменеия 24h: -6.78 %, 7d: -19.37 %
Cегодня L: $0.0002667 - H: $0.0002749
Капитализация $165.511k Rank 99999
Доступно / Всего 620.509m GOOD

good bitcoin boring space mean like used

good bitcoin → Результатов: 126


Bitcoin a Good Buy if Trade Tension Persists, Admits Wall Street Skeptic

By CCN: The frequently volatile stock market provides rare hideouts for investors but one of them could be bitcoin, according to Mr. Peter Boockvar of Bleakley Advisory Group. The chief investment officer said this week that a sharp rise in bitcoin price indicated that investors were unsure about the Federal Reserve’s stance on interest rate cuts, as well as about the outcome of an ongoing trade war between the US and China that kept buying sentiment weaker in both the Western and Asian stock markets.

2019-6-7 11:28


Bitcoin [BTC] could consolidate at $10,000 for a while if $12,000 is rejected, claims Vinny Lingham

The cryptocurrency market has been eagerly waiting for Bitcoin [BTC] to cross $9,000, however, that did not stop crypto enthusiasts from predicting what would happen of BTC after $9k. Vinny Lingham, the Chief Executive Officer [CEO] of Civic and a major Bitcoin proponent, had previously talked about how BTC dips were a ‘good buying opportunities’.

2019-6-2 20:30


Coinbase Sides With Bitcoin Cash (BCH) Miners on 51% Attack Smack

By CCN: Coinbase researchers have released their own investigative findings into the recent Bitcoin Cash 51% attack controversy, and their conclusions might upset many Bitcoin maximalists. When Bitcoin Cash came under attack during a scheduled hardfork in mid-May, a group of miners colluded to reverse the attacked blocks and return misappropriated funds to their rightful owners.

2019-5-31 17:20


Bitcoin SV [BSV] will absorb every other cryptocurrency in the future, claims Calvin Ayre

Whether it’s in the social media, or on the price charts, Bitcoin SV [BSV] has this uncanny ability to stoke the attention of the cryptocurrency industry, at times for good, most times for bad. The communications spearhead for the BSV project, Calvin Ayre, owner of their mouthpiece Coingeek stated that their cryptocurrency will eventually “absorb” […] The post Bitcoin SV [BSV] will absorb every other cryptocurrency in the future, claims Calvin Ayre appeared first on AMBCrypto.

2019-5-30 09:30


US Federal Attorney: Bitcoin Used to Indict Suspected Fentanyl, Proves It is No Good for Evading Authorities

Another suspected dark web drug dealer is about to stand trail because he wrongly believed Bitcoin transactions were entirely anonymous. This has prompted the US Attorney for the Northern District of Texas, Erin Nealy Cox, to issue a warning for all those attempting to deal drugs online using Bitcoin.

2019-5-30 00:00


Bitcoin [BTC] looks really good when you align it next to gold, says Ikigai CIO Travis Kling

The digital asset world has been rocked by several scams and negative news over its lifetime. However, the current bullish scenario seems to have provided a reprieve from it. This was a topic discussed in the latest WhatBitcoinDidPodcast hosted by Peter McCormack, where he spoke to Travis Kling, Founder and Chief Investment Officer of Ikigai […] The post Bitcoin [BTC] looks really good when you align it next to gold, says Ikigai CIO Travis Kling appeared first on AMBCrypto.

2019-5-29 01:30