Over the past few hours, Bitcoin has performed extremely poorly. As covered by NewsBTC previously, the cryptocurrency has effectively fallen off a cliff, plunging below 2019’s lows of $6,400 to as low as $5,600. This has liquidated $500 million worth of BitMEX longs.
This comes as the S&P 500 and Dow Jones are expected to open 5% down in the next few hours, plunging as the coronavirus crunch increases in intensity due to news from the NBA and Tom Hanks regarding the spread of the virus and its respective illness.
Despite this brutal crash, which some say unravels BTC’s long-term uptrend, some remain somewhat optimistic. In fact, one analyst and industry executive said that this may be a good time to buy Bitcoin.
Best Time to Buy Bitcoin?
Charlie Morris, CEO of cryptocurrency analytics firm ByteTree who last week warned investors that Bitcoin may soon see some weakness, recently argued that now might be the “least risky” time to buy Bitcoin.
Indeed, citing his company’s statistic of “Fair Value,” derived through the Network Value to Transactions ratio and the transaction value, he found that BTC’s Fair Value is currently at $6,400, meaning that it was dramatically undervalued when it traded at $5,600 an hour ago:
“With $18bn of weekly spend, the network is thriving. As for valuation, it is back to fair value. This is the “least risky” time to buy bitcoin! It doesn’t get much better than this.”
The two big risks in #bitcoin that concern me are valuation and the network. With $18bn of weekly spend, the network is thriving. As for valuation, it is back to fair value. This is the “least risky” time to buy bitcoin! It doesn’t get much better than this. pic.twitter.com/TInkLHLre3
— Charlie Morris (@AtlasPulse) March 12, 2020
Morris isn’t the only optimist against this harrowing backdrop. Arthur Hayes, CEO of BitMEX, said in a market update newsletter shared with the industry around four hours ago that he expects for the price of BTC to make a “nice run back through $10,000 towards $20,000 by year end. Each central bank will cut rates to zero and announce open ended quantitative easing.”
Equally as bullish is Joel Kruger of LMAX. He said in a recent interview with BlockTV that even if Bitcoin falls towards $6,000 as it has, it holding strong here should suggest that the macro uptrend is intact.
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