CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Spanish
    • Turkish
    • German
    • Bulgarian
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • CryptoPotato Spanish
  • CryptoPotato Turkey
  • CryptoPotato Germany
  • CryptoPotato Bulgaria
  • Market Updates
  • BTC Analysis
  • ETH Analysis
  • XRP Analysis
  • Interviews
CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Spanish
    • Turkish
    • German
    • Bulgarian
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • CryptoPotato Spanish
  • CryptoPotato Turkey
  • CryptoPotato Germany
  • CryptoPotato Bulgaria
Home » Crypto News » Bitcoin May Be Cheaper Than it Looks, says Fidelity

Bitcoin May Be Cheaper Than it Looks, says Fidelity

Author: Andrew Throuvalas

Last Updated Jun 15, 2022 @ 17:21

Fidelity’s Director of Global Macro highlighted three on-chain metrics suggesting that Bitcoin is undervalued. 

Getting your audio player ready...

Jurrien Timmer – the Director of Global Macro at Fidelity – recently claimed that Bitcoin may be “cheaper than it looks.” An analysis of certain on-chain data metrics suggests that the coin’s true valuation may be significantly higher than its current price.

Valuation VS Price

In a tweet on late Tuesday, Timmer shared a chart of Bitcoin’s price/network ratio, plotted against its USD price. The price/network ratio is calculated by dividing Bitcoin’s price by the total volume transmitted on-chain. This is also sometimes called the NVT ratio.

A high NVT ratio can indicate that an asset is overvalued, whereas a low NVT ratio can mean its undervalued. As the director explained, Bitcoin’s NVT ratio has now returned to levels from the 2013 and 2017 bull markets, whereas the price has only returned to late 2020 levels.

Image
Bitcoin NVT vs Price. Source: Fidelity

“Valuation is often more important than price,” he added.

The director also included a chart of prices plotted against non-zero Bitcoin addresses. The price has now deviated below the average network address growth curve.

Finally, a measure of Bitcoin’s dormancy flow indicated that the asset is technically oversold. Dormancy flow looks at the average number of  “coin-days” destroyed with each transaction – in other words, how long coins are staying dormant before moving again.

The metric has now drifted to its lowest point since 2011, meaning that coins are being sold relatively fast after being transferred.

Fidelity: Bullish During the Bear

Fidelity is known for being highly bullish on Bitcoin long-term. The asset manager recently announced that it would allow customers to include Bitcoin in their 401(k) retirement accounts. However, they quickly came under scrutiny from politicians for the move.

In a report in January, Fidelity argued that Bitcoin is different from all other cryptos. Whereas it views Bitcoin as a monetary good, it finds other assets like Ether more similar to venture investments.

In the short term, however, the crypto market has taken a thorough thrashing – as has the industry surrounding it. Rampant macro fears contributed to a massive Bitcoin selloff over the weekend, causing cascading liquidations for those using Bitcoin-collateralized loans.

One such group facing liquidation fears is Celsius – a crypto lending platform with over $500 million in Bitcoin sitting as collateral for a loan with Oasis. The company has been forced to freeze all customer withdrawals while they hastily locate liquidity to finance the loan, including thousands of Wrapped Bitcoin (WBTC).

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Tags: Bitcoin Bitcoin (BTC) Price Fidelity
Enjoy reading? Share with your friends
Facebook Twitter LinkedIn Telegram

About The Author

Andrew Throuvalas
More posts by this author

Andrew is a content writer with a passion for Bitcoin. He became familiar with Bitcoin back in 2013, but began diligently studying the blockchain technology and its economic implications in 2017. Ever since, he’s believed in the network’s power to replace the current global monetary system, and provide financial freedom to billions worldwide.
Contact: Medium | LinkedIn | Twitter

Join Our Community

FacebookX YouTubeTelegram


Editorials
How to Trade on Hyperliquid: The Ultimate Guide (Step-by-Step Walkthrough)

How to Trade on Hyperliquid: The Ultimate Guide (Step-by-Step Walkthrough)

10 Best Meme Coins to Watch in June 2025

10 Best Meme Coins to Watch in June 2025

7 Best Meme Coin Presales to Watch in June 2025

7 Best Meme Coin Presales to Watch in June 2025

Toobit Review 2025: Is Toobit a Safe Crypto Exchange?

Toobit Review 2025: Is Toobit a Safe Crypto Exchange?

Hyperliquid Bridge: How to Bridge USDC to Hyperliquid

Hyperliquid Bridge: How to Bridge USDC to Hyperliquid

11 Best Crypto Presales to Consider in June 2025

11 Best Crypto Presales to Consider in June 2025

Need for Speed – Only Ultra-Fast Blockchains Will Win the Adoption Race (Opinion)

Need for Speed – Only Ultra-Fast Blockchains Will Win the Adoption Race (Opinion)

Join Our Newsletter
Become a CryptoPotato VIP
One Weekly Email Can Change Your Crypto Life.
Sign-up FREE to receive our extended weekly market update and coin analysis report
We NEVER send spam. You can unsubscribe at any time.
Invalid email address
Thanks for subscribing!
Footer Logo
About
Advertise on CryptoPotato
About Us | Contact Us | Careers
Editorial Policy
Terms of service | Privacy Policy | GDPR
More Sections
IEO List | Evaluations
Airdrops
Scholarship
Disclaimer
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
© Copyright CryptoPotato 2016 - 2025
Scroll to top
One Daily Email Can Change Your Crypto Life.

Sign-up FREE to receive our extended daily market update and coin analysis report

We never send SPAM. You can unsubscribe at any moment
Invalid email address
Thanks for subscribing!