Bloomberg cryptocurrency analyst believes that Bitcoin is massively below the price it should be holding. According to a newsletter published by the media agency, the company says that an on-chain indicator suggests that Bitcoin’s price should be performing at a much higher price.
This comes according to Bloomberg analyst Mike McGlone, who believes that Bitcoin should be looking at a $15,000 USD price at present rather than the $10,300 USD it is holding at the moment. This suggestion comes from Bitcoin’s recent highs in value, the cryptocurrency’s all-time highs in recorded hashrate and the monthly average of traders with active Bitcoin addresses. As stated:
“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.”
Bullish about Bitcoin despite bearish dips
Even during recent drops in the value of Bitcoin, McGlone believes that the future of the token is hopeful in both trading and investment purposes. He has suggested that Bitcoin looks as though it is the current (and likely to remain for some time) leader in the future of money and saving, saying that it will be a major element in the “paradigm shift toward digital money and stores of value”. While he acknowledges that the cryptocurrency might fall in value, this is unlikely a long-term issue given two fundamental factors of hashrate and active addresses:
“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.”
In addition to the healthy hashrate and increasing number of active addresses in the industry, there seems to be a positive sentiment surrounding the token. This has come from traders and investors, market analysts and the general crypto public. While it might not have a monumental impact on the price of Bitcoin, it is worthwhile noting that the market seems to be in a healthy place to grow. It’s plausible that, if Bloomberg is correct, we will be looking at Bitcoin valued at $15,000 USD soon.