Perianne Boring, the Digital Chamber of Commerce CEO, has said fundamentals show that Bitcoin is undervalued despite the asset undergoing volatility.
Speaking during an interview with CNBC, Perianne cautioned investors against focusing more on the asset’s price but instead they should look out for Bitcoin’s underlying value.
Perianne suggested that Bitcoin’s fundamentals are stronger than ever, considering that the network is growing faster than other tech elements like the internet. At the same time, she indicated that focusing on aspects like the growing hash rate, Bitcoin is therefore undervalued.
According to the executive, based on multiple correlated models, Bitcoin will likely hit between $50,000 and $100,000 in 2022 while affirming the asset is the digital goal.
“There’s a number of models that professional crypto investors are using today. Today they’re all between $50,000-$100,000 per Bitcoin. These models are over 90% correlated and what they’re telling us is that Bitcoin is undervalued. <…> The markets are behaving just as expected, the fundamentals of the network are as strong as ever,” said Perianne.
Interestingly, the recent Bitcoin price drop has resulted in skepticism, with critics stating that the asset is heading towards the zero value. However, the CEO noted that the asset’s fundamentals eliminate any potential to correct to historic lows.
Analysts maintain bullish outlook for Bitcoin
Despite the ongoing volatility, several market analysts maintain that Bitcoin is on a growth path. As reported by Finbold, Michael Bucella from BlockTower Capital stated that volatility is part of Bitcoin’s growth journey. He noted that the asset is firmly still under a growth mode.
In general, the first weeks of 2022 are proving challenging for crypto investors, with the market wiping out almost $683 billion since the start of the year.
The crypto market’s prospects are further complicated by factors like the uncertainty around regulation, with several jurisdictions moving towards enacting laws for the industry.
For instance, U.S. President Joe Biden plans to release a government-wide strategy for digital assets in February. He is also expected to task federal agencies with assessing the risks and opportunities posed by cryptocurrencies.