The price of Bitcoin has held firm at $ 30,000 and according to Raoul Pal’s Global Macro Investor report, the leading cryptocurrency by market cap could increase tenfold in October 2021.
The GMI model uses the Metcalfe value to make the prediction and currently suggests that the cryptocurrency is undervalued. Could that noble goal be in just nine months? Here’s what past market cycles say about the estimate.
Raoul Pal’s GMI report calls for $ 300K BTC before end of 2021
Raoul Pal has decades of experience in global macroeconomic investments. He has regularly spoken openly about Bitcoin and its long-term value proposition. The founder of GMI spoke specifically about cryptocurrency ahead of the fourth quarter 2020 burst.
Valuations only rose from there, and significantly. However, according to a recent GMI report model that focuses on the Metcalfe value, things are only heating up.
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The box includes the GMI model metcalfe value and its proximity to the price of Bitcoin. The “value” has acted as a kind of middle ground for the valuation of the cryptocurrency.
A chart created by Global Macro Investor shows the path to $300K per BTC | Source: GMI Report
Currently, Bitcoin is tracking significantly below its Metcalfe value, according to the report. Past examples of Bitcoin bull markets have always outpaced Metcalfe’s value, but simply catching up with it would take the cryptocurrency to $ 300,000 per BTC by October 2021.
Trajectory matches target, but Metcalfe value might suggest more is possible
In fact, the project aligns with the predictions of other analysts, companies, etc. Even taking the exact trajectory of the last cycle and superimposing it on the current cycle, that would indicate a peak of around $ 325,000 per BTC.
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However, if Metcalfe’s value is truly accurate, and the cryptocurrency is that accurate, $ 300,000 as a cap is an extremely conservative estimate. Once again, past examples of bull market spikes have always exceeded Metcalfe’s value according to the GMI report chart.
The trajectory from the last cycle matches GMI's estimate | Source: BTCUSD on TradingView.com
Prices where previous peaks exceeded value would put the price of each Bitcoin somewhere close to $ 1 million each.
If so, going shopping anytime over the next nine months could be the greatest opportunity of our lives. However, other attempts to place a fair market value on the cryptoasset using Metcalfe’s Law have much lower estimates.
Featured image from Deposit Photos, Charts from TradingView.com