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Bitcoin: Bullish Metrics and New Pricing Model Suggest Positive Future

Bitcoin: Bullish Metrics and New Pricing Model Suggest Positive Future

According to Glassnode, Bitcoin's on-chain metrics show positive signs, despite its stagnant price movement this week.

Increasing Bitcoin Demand

One of the metrics the firm monitors is the miners’ fee revenue momentum, which tracks the increasing demand in the BTC market. Glassnode has noted that the metric indicates a rise in demand for Bitcoin, with the 90-day SMA for fees exceeding its yearly average.

Moreover, Glassnode has observed that the number of non-zero Bitcoin addresses has reached a record high of about 45.5 million, indicating an improvement in on-chain activity.

Similarly, another analytics firm, Santiment, has reported that Bitcoin traders are currently experiencing more losses than profits, which it views as a positive signal as it indicates that the FOMO crowd is abandoning the rally.

Bullish Bitcoin Prediction

Raphael Zagury, the chief investment officer at Swan Bitcoin, has devised a new pricing model for Bitcoin. Schrödinger’s Coin Model calculates a fair price of $387,823 in a base case by valuing Bitcoin as a store of value that will demonetize other assets.

The model is based on Michael Saylor’s “Bitcoin as Property” and posits that central bank money printing has eroded the value of money, leading to investors seeking protection through financial instruments like stocks, ETFs, and real estate.

READ MORE: Bitcoin Price: Predictions for 2024-2030

Zagury argues that Bitcoin could become the premium asset by demonetizing these traditional stores of value.

New Bitcoin Pricing Model

The model is based on quantum superposition, where Bitcoin has two possible outcomes, and uses probabilities for how much market share it can capture from each asset class.

The base case assumes that 60% of gold’s market capitalization is due to monetization rather than utility. With a market capitalization of $10 trillion and a 70% probability of gold demonetization, this results in a Bitcoin price of $87,000.

The model is still under development, and the most bullish scenario predicts a Bitcoin price of over $3 million per coin.

At the time of writing, Bitcoin is trading at a little over $28,000, up 0.5% in the last 24 hours and down nearly 1.5% in the past week. Nonetheless, BTC remains up by over 68% since the beginning of 2023.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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