Overview of Bitcoin Price Analysis
• George Tung has provided a timeline for when Bitcoin (BTC) price will hit $50k.
• He presented three reasons to support his argument that include the recovery from bottom, institutional adoption, and increasing use cases.
• Investors should be cautious while investing in Bitcoin and conduct their own research before making any decisions.
Angel Metrics Indicating Recovery From Bottom
George Tung’s first reason focuses on angel metrics which indicate that Bitcoin is recovering from its bottom. He cited several indicators such as the Rhodo ratio, MVRV score, realized cap hold of waves and reserve risk which all suggest that Bitcoin has hit its lowest point using previous data. Additionally, the fractal pattern similar to 2019 when Bitcoin shot upwards after going sideways for a few months also supports his claim.
Tung’s second reason is institutional adoption where he highlighted that BlackRock and Fidelity have invested in Bitcoin-related companies and introduced their own Bitcoin funds and exchanges. BlackRock holds a $15 billion fund and physical Bitcoins while Fidelity is already involved with miners and institutions indicating seriousness in investing in this space.
Growing Use Cases
Tung’s third reason is the growing use cases of Bitcoin which further indicates potential store of value against inflation, appealing many investors. The recent success of first NFT collection indicates demand for digital art whereas upgrades to blockchain allows storage of images on it. Stacks project helps dApp makers program on top of BTC with 35000 smart contracts already deployed along with Lightning Network making it an effective medium for exchange purpose.
Advice For Investors
Though confident about his prediction, Tung advises investors to exercise caution while investing in this asset class by conducting their own research before taking decisions .Currently BTC is worth $24,876 as per press time.