Quick take:
Crypto and Bitcoin analyst Timothy Peterson
, has pointed out that Bitcoin’s current price is ahead of its fundamentals by six to nine months. As a result, Bitcoin is currently overpriced by a factor of 50%. Mr. Peterson further explained that this should not be a big concern as seen in his statement below.Thoughts on #bitcoin. Overvalued to fundamentals by ~50%. Price ahead of fundamentals 6-9 months. Not a big concern, this happens often especially with a technology in the limelight.
In his analysis of Bitcoin, Mr. Peterson forecasted that BTC has a high chance of breaking $20k. After this level, fundamentals will not matter and the price of Bitcoin will continue rising as seen with Tesla (TSLA) and Snowflake (SNOW) stocks.
Good chance #bitcoin higher if breaks $20K. Fundamentals won’t matter, high can and often does go higher: $TSLA $SNOW recent examples.
With respect to Bitcoin’s performance next year, Mr. Peterson had this to say.
End of 2021, #bitcoin adoption rate justifies $24k, but if 50% overvalued, then $36k would be entirely possible sometime in 2021. Would not get concerned unless > $50k in 2021.
Summing it up, Bitcoin and Crypto analyst Timothy Peterson has pointed out that Bitcoin is currently overvalued by a factor of 50% with respect to its fundamentals. However, such an overvaluation should not be a big deal as it sometimes happens with emerging technology in the limelight such as Tesla or Snowflake Inc.
With respect to 2021, Mr. Peterson has forecasted that once $20k is breached, Bitcoin will keep rising and possibly hit $24k or even $36k. The only scenario that should be worrisome, is Bitcoin exceeding $50k in 2021.