'Cheap' Bitcoin at $20,000 as BTC price-to-wallet ratio mimics 2013

Jurrien Timmer of Fidelity Investments remains optimistic about the strength of the Bitcoin network, while another commentator reports an "irresistible risk/reward ratio " at $20,000.

Bitcoin (BTC) hasn't been this good since going for $1,130, analyst says, as BTC offers 'irresistible' risk/reward.

In a July 7 Twitter thread, Jurrien Timmer, director of global macroeconomics at asset manager Fidelity Investments, simply described $20,000 worth of Bitcoin as "cheap".

While fears that crypto markets could suffer further declines this year remain, some believe Bitcoin's current price levels offer value for money not seen in years.

Analyzing the price of BTC against the number of non-zero addresses (portfolios with a positive balance), Timmer concluded that BTC/USD is now back to where it was at the top of the 2013 bull market.< /p>

At the time, BTC/USD managed to reach around $1,130 before spending several years consolidating thanks to the demise of the Mt. Gox exchange.

"I'm using price per million non-zero addresses as an estimate of bitcoin's valuation, and the chart below shows valuation rebounding to 2013 levels, even though price hasn't come back than at 2020 levels," Timmer explained.

"In other words, Bitcoin is cheap."

Bitcoin's price-to-network ratio isn't the only encouraging sign regarding Bitcoin's growth despite the current bear market. Timmer added that Bitcoin adoption still reflects the rise of the internet and that the Bitcoin network "appears to be intact" in terms of its growth cycles.

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