In the midst of the bearish market sentiment that has seen the price of Bitcoin (BTC) threaten the crucial $20,000 level, a number of observers have been speculating on when the downward spiral of the so-called ‘crypto winter’ will come to an end.
According to Jurrien Timmer, the Director of Global Macro at investment giant Fidelity, the Bitcoin dormancy flow chart “shows how technically oversold Bitcoin is.”
Indeed, Trimmer acknowledged in a series of tweets on June 15 that Glassnode’s dormancy flow indicator is now at levels not seen since 2011.
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Is Bitcoin cheaper than it looks?
Questioning the notion of whether Bitcoin is cheaper than it looks, the Director of Global Macro said taking a basic “P/E” indicator for BTC to be the price/network ratio, then that ratio has returned to levels last seen in 2017 and 2013, despite the fact that Bitcoin itself has just returned to levels last seen in late 2020.
He also said:
Another way to highlight this is by overlaying Bitcoin’s non-zero addresses against its price. Price is now below the network curve.
Fidelity CEO says bear markets are a time to ‘double down’
Notably, Chief Executive Officer and Chairman of Fidelity Investments, Abigail Johnson, is unconcerned by the recent decline in the cryptocurrency market she said on June 9, that the current bear market is her “third crypto winter.”
“The fundamentals of a long-term case are really strong when everybody else is dipping [out], that’s the time to double down and go extra hard into it.”
Furthermore, it was stated on June 7 in one of the most recent such developments that three financial giants – Citadel Securities, Fidelity Investments, and Charles Schab Corp – are joining up to establish a cryptocurrency offering that would extend access to digital assets, to enable “retail brokerages to offer crypto-executions to their customers.”
Finbold also revealed that Fidelity is preparing to go on a recruiting frenzy for crypto talents. This would allow the company to boost the number of staff working in its crypto department, Fidelity Digital Assets, which now has about 200 workers, to 210.
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