Bitcoin

Paul Tudor Jones fractal chart for Bitcoin price hints Possible explosive rebound

Based on the fractal diagram, Bitcoin is in the early stages of a lengthy rally This could cause the price of Bitcoin to grow exponentially over the long term.

According to Coinmarketcap, Bitcoin’s market cap is currently $ 329,248,683,089.

Fraction of the Bitcoin price compared to the gold price. Source: Bloomberg

Bitcoin may be on the same path as gold

There are two main reasons why the price of Bitcoin might follow the macro trend that gold presented in the 1970s. BTC has a fixed offering that cannot be expanded, making it an attractive hedge against inflation. Second, BTC shares the same safe haven characteristics as gold..

Paul Tudor Jones fractal chart for Bitcoin price hints Possible explosive rebound
Paul Tudor Jones fractal chart for Bitcoin price hints Possible explosive rebound

In August 2020 the Winklevoss twins, Billionaire Bitcoin Investors Behind Gemini, America’s Largest Cryptocurrency Exchange, They optimistically argued why the price of BTC could hit $ 500,000.

In the work, they identified the characteristics of Bitcoin that make it a viable asset as a safe haven. Winklevoss made it clear that, unlike gold, BTC is not exposed to any potential supply shocks.. They wrote the following:

“Supply. Bitcoin is not just a scarce commodity, it is the only known good in the universe that has a defining and fixed supply. As a result, Bitcoin is not subject to any of the potential positive supply shocks that gold (or any other commodity) may face in the future . “

Because of this property of Bitcoin, investors keep arguing that BTC is a better safe haven than gold. This comparison between BTC and gold leads many to believe that the price of Bitcoin is on a long-term exponential growth path..

Su Zhu, the CEO of Three Arrows Capital, one of the largest funds in the cryptocurrency space, said::

A sustained decline in BTC’s value in US dollars would be extremely optimistic as it turns out that we are tracking the 70s gold fractal, like Paul Tudor Jones, the legendary macro investor who successfully used fractals to predict the super cycle in the stock markets , indicating. from the 80s. “

There is also a huge gap between the valuation of Bitcoin and that of gold. The market capitalization of gold is currently estimated at $ 9 trillion. Compared, Bitcoin’s market capitalization is less than 4% of its gold valuationwhich leaves a gap between the two assets.

Investors say Bitcoin’s origins give it strength

Tyler Winklevoss noticed that too The anonymity of the creator of Bitcoin is an important positive factor for the digital asset.

Said Bitcoin has grown to be a fortune of $ 330 billion, and yet Satoshi Nakamoto, the creator behind it, remains anonymous.

This only legitimizes and strengthens the perception of Bitcoin as a suitable store of value.. The said::

“The fact that we don’t know who Satoshi is and that Bitcoin’s market cap is $ 330 billion is proof that Bitcoin speaks for itself.”

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