Bitcoin price has hovered at $ 30,000, and according to Raoul Pal’s Global Macro Investor Report, the leading cryptocurrency by market cap could be 10x from there by October 2021.
The GMI model uses Metcalfe Value to make the prediction and it currently suggests that the cryptocurrency is severely undervalued. Could that lofty goal be only nine months away? Here’s what past market cycles say about the estimate.
Raoul Pal’s GMI report calls for $ 300,000 BTC before the end of 2021
Raoul Pal has decades of global macro investing experience. He has spoken regularly about Bitcoin and its long-term value proposition. The GMI founder was particularly vocal about cryptocurrency before the outbreak in the fourth quarter of 2020.
The ratings only increased significantly from there. However, things are only warming up, according to a recent model from a GMI report that focuses on the Metcalfe score.
Related reading | The strength of the Bitcoin trend suggests that there is no end in sight. Historically the second strongest
The chart includes the GMI model Metcalfe value and its proximity to the Bitcoin price. The “value” served as a kind of center point for the valuation of the cryptocurrency.
A chart created by Global Macro Investor shows the way to $ 300,000 per BTC | Source: GMI report
Bitcoin is currently well below its Metcalfe value, according to the report. Previous cases of Bitcoin bull markets have always risen above the Metcalfe level, but a simple catch-up in this case would bring the cryptocurrency to $ 300,000 per BTC by October 2021.
The trajectory matches the target, but Metcalfe’s value might suggest that more is possible
The project is indeed in line with predictions from other analysts, companies, and more. Even taking the exact trajectory of the last cycle and imposing it over the current cycle would indicate a high of around $ 325,000 per BTC.
Related reading | Robinhood Reminder: Not Your Keys, Not Your Bitcoin
However, if the Metcalfe value is really accurate and the cryptocurrency is that accurate, then $ 300,000 as an upper limit is an extremely conservative estimate. In the past, bull market peaks have always risen above Metcalfe, according to the GMI reporting chart.
The trajectory of the last cycle corresponds to the estimate by GMI Source: BTCUSD on TradingView.com
Prices where previous spikes were above value would bring the price of each bitcoin to around $ 1 million apiece.
If so, anytime in the next nine months, buying it could be the greatest opportunity of our lives. However, other attempts to assign fair market value to the crypto asset under the Metcalfe Act have much lower estimates.
Featured image from deposit photos, charts from TradingView.com
