Please enter CoinGecko Free Api Key to get this plugin works.

Watch network’s Apple-like growth ,BTC up n down says Fidelity analyst

The Bitcoin network’s user base continues to grow, evoking memories of Apple’s meteoric rise to prominence.

Bitcoin (BTC) fell even more this week, clinging to the $40,000 support level on February 18.

The up-and-down discussion about Bitcoin’s price is “mainly noise.”

While many analysts expected Bitcoin’s price to fall to $30,000 in the near future, largely due to technicals, Fidelity Investments’ Jurrien Timmer slammed the downward bias, calling it “mostly noise.”

Similarities in Bitcoin and Apple stock prices

Late Thursday, Global Macro’s director posted a series of tweets about Bitcoin’s network expansion since its start as a decentralised medium of exchange. He compared the network effect of cryptocurrency to that of Apple, a trillion-dollar tech behemoth.

“Apple’s stock price has increased 1457 times since 1996, while its price-to-sales ratio has increased 30 times,” Timmer noted.

“If, according to Metcalfe’s Law, the growth in valuation is an exponent of the growth in sales, then price should rise as an exponent of both measures.”

485e11c3 429e 46ab 8b8d a45459caba27

When the same measures were applied to the Bitcoin network, the results were impressive.

For example, according to Fidelity, the price of Bitcoin has increased by 640,633 times since its foundation through the end of 2021. While its price-to-network ratio, a supposed equal of the price-to-sales ratio, was 52 in the same time span, up about 867 times.

e6bddcf6 c905 4d6b 8983 668a095a0644

“If we apply Metcalfe’s Law to the square of 867, we get 751,111,” Timmer explained, noting that this is “approximately in line with the 640,633x realised price gain.”

Timmer hinted to long-term expansion in the Bitcoin market because of the striking similarities in the rise of Bitcoin and Apple networks, based on their pricing and price-to-sales/network ratios.


In addition, the seasoned analyst compared demand curves for mobile phone subscriptions and internet adoption to Bitcoin to come to the same conclusion, predicting that BTC’s price will rise above $100,000 in the future.

387f8eca ff73 4be9 8206 a9db9ab27123

Long-term BTC settings are once again in the spotlight.

Other analysts, like Timmer, predicted that the current downturn would be a correction in a long-term bull market.

BTCfuel, an independent market analyst, for example, expressed optimism, citing a fractal from 2013.

In particular, Bitcoin appears to be stuck below the same moving averages in 2022 as it was in 2013. And, according to BTCfuel, since BTC broke above the stated resistance regions eight years ago, its chances of replicating the same price action this year appear to be better.

5b7db71b ec5c 40e6 8ff9 7ee53383d69f

The analyst wrote, “Resumption soon.”


Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

Leave a Comment

Your email address will not be published. Required fields are marked *


Recent Posts

Follow Us