Earlier this week, Global Macro Manager at Cane Island Alternative Advisors Timothy Peterson offered that he foresees that Bitcoin price will not reach below $10,000 USD again. Using a model he devised back in 2017, Peterson predicts that there is only 10% chance that the cryptocurrency will hit a price tag of lower than $11,000 USD:
— Timothy Peterson (@nsquaredcrypto) October 11, 2020
Accurate predictions or just hopeful about Bitcoin?
Peterson’s model has been more or less accurate in determining shifts in Bitcoin’s movements, according to the analyst. He claimed that predictions he has made about the prices at the end of the year from the model have been successful so far. With an estimation range around $7,000 USD for Bitcoin’s value at the end of the year, Peterson fell close when the token ended the year on a value of $7,243 USD.
His model, based on Metcalfe’s Law, considers the quantity of Bitcoin traded per active wallets. In this, he uses the price of the token in reference to the demand for Bitcoin (measured according to the investors, traders, and holders). Using the supply (which is quantifiable and limited to a cap) of Bitcoin, Peterson’s basis is founded on both historic trends and the likelihood of the token moving hands.
Other analysts echo bullish sentiments about Bitcoin price
In addition to Peterson, other experts and analysts in the industry believe that the days of low prices for Bitcoin are behind us. With an implied call to “buy low”, cryptocurrency analyst Mati Greenspan, the founder of Quantum Economics, also commented with similar sentiments earlier this year. In February, Greenspan offered:
This might be the last chance to buy bitcoin under $10,000
— Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) February 23, 2020