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Bloomberg suggests that Bitcoin should be $15,000 according to this adoption metric

2020.09.24 oklinkeddie

Their belief seems to be that Bitcoin is destined to appreciate unless these key indicators reverse themselves.

Picture from Cointelegraph

According to the Bloomberg crypto newsletter, a key on-chain indicator suggests that Bitcoin (BTC) is currently greatly undervalued.

Bloomberg’s crypto analyst Mike McGlone believes that the recent all-time highs in Bitcoin’s hashrate and more importantly, the 30-day average of active Bitcoin addresses, suggests a $15,000 price level for the asset:

“The Bitcoin hash rate continues to increase and recently reached new highs. Also advancing are addresses used. A top metric for adoption, the 30-day average of Bitcoin addresses is equivalent to the price closer to $15,000 when measured on an autoscale basis since 2017.”

Picture from Glassnode

McGlone has remained optimistic about Bitcoin throughout its ups and downs. He says that Bitcoin appears to be a leader in “paradigm shift toward digital money and stores of value” and although he admits that it can still fail, he believes this to be unlikely, concluding:

“Our graphic depicts primary on-chain metrics that would need to reverse for Bitcoin to not keep appreciating in price — the hash rate and active addresses.”

It is true that despite the recent downward momentum, Bitcoin’s on-chain fundamentals have seemingly remained strong, though there is no way of knowing when / if these indicators will lead to a price correction.

Original article from Cointelegraph, for more info about bitcoin, you may refer to OKLink.

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