Bitcoin, the world’s most popular cryptocurrency, is double the price it should be at its fair value, according to ByteTree’s chief investment officer.
Charlie Morris of ByteTree, a provider of digital asset data, made the statement earlier today at the Token2049 conference in London, where he met with representatives from Coinbase and Galaxy Digital to discuss the adoption of the cryptocurrencies across Europe (panel above).
When asked what he thinks about the price of Bitcoin, Morris said Elon Musk’s $ 1.5 billion Bitcoin investment in February made the asset highly valued.
Slow network activity since China’s crackdown on Bitcoin mining in May has pushed prices “out of step with events,” Morris said.
“What we are seeing is this high premium level since leaving China,” Morris explained. “The coin has not adjusted downward as much as the network has.”
As the value of transactions increased in line with the price increases between February and July, when the price exceeded $ 60,000 and the weekly transaction value hit $ 80 billion, the price is now over $ 55,000 despite a value of transaction hovering around $ 45 billion.
“A proven investor might wait for an opportunity for Bitcoin to be cheap. It can get cheap in two ways: one is for the network to grow and catch up with the price, the other is for the price to depend on the network, ”Morris explained.
According to trade data from ByteTree, Bitcoin is currently at a 105% price premium and was last at fair value in May 2021, following the market-wide price correction.
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