Chamber of Digital Commerce chief executive Perianne Boring told CNBC yesterday that correlation models suggest Bitcoin’s actual value is between $50k and $100k
Founder and president of the Chamber of Digital Commerce, Perianne Boring, is the latest figure to assert that Bitcoin is currently undervalued, despite the volatility in crypto markets.
During a CNBC Squawk Box Monday interview, Perianne vised investors to focus on Bitcoin’s underlying value rather than its price position.
Several factors back her postulation
Perianne said that the fundamentals of Bitcoin are showing real strength, and this is evidence that the asset is inaccurately valued. She pointed out that Bitcoin is currently growing at a higher rate than other technology elements – the internet during the later 90s and early 2000s boom.
She ded that other facets of Bitcoin, such as its blossoming hashrate (currently at an all-time high), are further indicators of Bitcoin’s unachieved value.
In dition, Perianne noted that professional crypto investor models that heavily correlate with Bitcoin are currently placing Bitcoin in the $50k to $100k range.
“There’s a number of models that professional crypto investors are using today. Today they’re all between $50,000-$100,000 per Bitcoin. These models are over 90% correlated and what they’re telling us is that bitcoin is undervalued,” she said.
The CEO also explained that the current state in which market prices are seeing the volatility of up to 50% is nothing but expected behaviour.
“Volatility is not necessarily a b thing, and it’s normal to see 30-50% volatility in the crypto markets in any given month. The markets are behaving just as expected,” detailed Perianne.
Not taking ‘zero’ for an answer
With the markets recently plunging and critics diving right in with claims that Bitcoin could bubble down to zero, Perianne suggested that such assertions are inaccurate as Bitcoin’s fundamentals would keep it afloat.
“…despite the fact that the price is down, the fundamentals of the network are as strong as ever,” she ded.
Notably, even though investors may have seen the worst of crypto in the first few weeks of the year, strategists remain bullish on the world’s top crypto coin. The market analysts maintain that the volatility in the markets is routine as Bitcoin charts its path of growth.
Last April, Perianne predicted that the coin would hit $288,000 before the close of the year. The CEO explained, at the time, that the prediction was based on the stock-to-flow model.
In the same interview, she also projected that Bitcoin would scale much in the future and continually eat gold such that by 2029, one Bitcoin would be worth 10,000 ounces of gold.
META ARTICLE: Correlation models value Bitcoin in the range of $50k to $100k PUBLISHED: 2022-01-25 20:17:39 SOURCE: https://cointext.com/news/fundamentals-and-correlation-models-show-that-bitcoin-is-undervalued/