Analyst Timothy Peterson assures that, with a 90% probability, Bitcoin (BTC) will never again test below $11K.
On October 11th, Timothy Peterson, Global Macro Manager at Cane Island Alternative Advisors, developed a Twitter thread that sparked the crypto enthusiasm of all Bitcoin (BTC) investors.
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Bitcoin will never go below $11K again with a 90% chance
Yes, the most striking conclusion from October 11th is that Bitcoin (BTC) has a 90% chance of continuing to operate above $11k and never falling below this value again.
The question is: How does Peterson draw such a conclusion? Well, the analyst is the author of a Bitcoin valuation model based on Metcalfe’s Law.
For those who don’t know this law, it states that the value of a telecommunication network increases proportionally to the square of the number of users of the system.
Therefore, based on this model, Peterson points out that the lowest price for Bitcoin in the future is $11,004.
Peterson explains that since 2017, when he explained how Metcalfe’s law explains Bitcoin, he has been working on his predictions. The work over all these years seems to have paid off when he correctly predicted that BTC would successfully break the $10K.
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12K for November 30th
Not only will Bitcoin not fall below $11K again, but Peterson’s model points out that the leading crypto will have a valuation of $12K by November 30th of this year.
Also, their model projects that Bitcoin will have a valuation of $100,000 by January 2024 and $1 million by March 2028.
Now the question is: Should we believe him? Since we know how to make predictions in the crypto market, it’s a very common practice that usually produces disappointment.
The crypto community knows from its own experience that the market can be an unpredictable one. However, certainly Peterson’s model has stuck some predictions in the past.
In fact, Peterson once predicted that, by the end of 2019, Bitcoin would have a valuation of $7,000 and the recorded price for that date was $7,243. There’s no way to know for sure.
Certainly at this point there are many factors external and internal to the leading crypto that could push its price to new levels. However, let’s remember that in the crypto market, as in life, decisions are bets; you can win or lose, it’s up to you.