On October 11 Timothy Peterson, Global Macro Manager at Cane Island Alternative Advisors, developed a thread on Twitter which aroused the enthusiasm of all Bitcoin (BTC) investors.
Bitcoin will never go below $ 11K again with a 90% chance
Well yes, the most striking conclusion of last October 11 is that Bitcoin (BTC) has a 90% chance of continuing to trade above $ 11k and never fall below this value again.
The question is: How does Peterson draw such a conclusion? Well, the analyst is the author of a Bitcoin valuation model based on Metcalfe’s Law.
For those who do not know this law, it establishes that the value of a telecommunication network increases proportionally to the square of the number of users of the system.
So, based on this model, Peterson points out that the lowest price for Bitcoin in the future is $ 11,004.
Peterson explains that since 2017, when he explained how Metcalfe’s law explains Bitcoin, he has been working on his predictions. The work over all these years seems to have paid off when he correctly predicted that BTC would successfully break out of $ 10K.
$ 12K by November 30
Not only will Bitcoin not fall below $ 11K again, but Peterson’s model points out that the leading crypto will have a valuation of $ 12K by November 30 of this year.
Likewise, its model projects that Bitcoin will have a valuation of $ 100,000 by January 2024 and $ 1 million by March 2028.
Now the question is: Should we believe him? As we well know, issuing predictions in the crypto market is usually a very common practice that generally produces disappointment.
The crypto community knows firsthand that the market can be unpredictable. However, Peterson’s model has certainly hit some predictions in the past.
In fact, Peterson at the time predicted that, by the end of 2019, Bitcoin would have a valuation of $ 7,000 and the registered price for that date was $ 7,243. Luck or ingenuity? There is no way to know for sure.
Certainly at the moment there are many factors external and internal to the crypto leader that could push its price to new levels. However, let us remember that in the crypto market, as in life, decisions are bets; you can win or lose, it’s up to you.