Similarities in historical Amazon price and Bitcoin performance

Raoul Pal also suggested that Bitcoin is highly undervalued and should ideally be around $ 100,000.

Former hedge fund manager Raoul Pal toasted An interesting observation in the relationship between Amazon’s historical price action and Bitcoin’s since 2013 on Saturday. The co-founder and CEO of Real Vision cited Metcalfe’s Law, which posits that the value of a network increases exponentially as the number of users on the network grows.

The investment strategist first reviewed the current price of Bitcoin about Metcalfe’s Law. He believed that the world’s leading digital asset is highly undervalued. An extrapolation based on Global Macro Investor’s Metcalfe model indicated that the crypto should be pegged at the price of $ 100,000.

H explained the disparity and pointed out that it was due “because there are fewer network apps on BTC than ML would prefer.”

Amazon Stock Performance Against Bitcoin

By explaining his point of view, he put into perspective a volatile period for Amazon, the early 2000s, a period in which AMZN shares listed on the NASDAQ fell as much as 50%.

Amazon stock performance between 2003 and 2011

He drew attention to the general shape of Amazon shares between 2003 and 2011, which is graphically compared to the shape of the price of Bitcoin at the moment. The performance of the Bitcoin market between 2013 and 2022 more support for his judgment suggesting similarity to Amazon, he explored the structure of the Bitcoin market in the past 12 months, which, he said, is the comparative equivalent of the e-commerce giant 2010 shape.

Although he wasn’t sure about it, he raised the possibility that Bitcoin will even drop lower to test the $ 30,000 price point if it is to follow Amazon’s price action in 2010.

“It suggests that BTC could even test $ 30,000, but I doubt it (I think the sale is almost done) but who the heck knows! It’s similar enough for context, but never trust fractals. They’re just for context. The Fractal BTC is longer in time than AMZN and more volatile […]. In the end, everything is noise. The log chart is the truth, and that is itself an approximation of Metcalfe’s Law. If it’s not noise to you, your position is too large for your time horizon “, Pal concluded.

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