Fidelity’s Director of Global Macro Jurrien Timmer has recently said that Bitcoin’s “P/E” metric using the cryptocurrency’s price and network ratio, it’s back to levels last seen in 2017 and 2013, even though the cryptocurrency’s price is back to late 2020 levels.

According to Timmer, valuation “often is more important than price,” and BTC’s valuation is implying the flagship cryptocurrency is currently undervalued.

In a follow-up tweet, Timmer overlaid Bitcoin’s non-zero addresses against its price, and found that the cryptocurrency’s price “is now below the network curve,” further suggesting BTC is being undervalued after its recent major sell-off.

The flagship cryptocurrency is at the time of writing trading close to the $20,000 mark after losing over 9% of its value in the last 24-hour period, and has lost around 60% of its value over the past 6 months, as BTC was trading near the $50,000 mark earlier this year.

Bitcoin’s price has plunged over a number of macroeconomic factors, which include soaring inflation throughout the world and the ongoing Russian invasion of Ukraine, coupled with crypto lender Celsius Network freezing withdrawals from its platform citing “extreme market conditions.” These factors have seen the cryptocurrency space’s total capitalization drop below $1 trillion for the first time since early 2021.

In his thread, Timmer added that another way to show how “technically oversold Bitcoin is,” is to look at Glassnode’s dormancy flow indicator, which shows levels that hasn’t been seen in over a decade.

Glassnode measures dormancy as the “average number of days destroyed per coin transacted” and defines it “as the ratio of coin days destroyed and total transfer volume.” Its entity-adjusted dormancy flow indicator is the “ratio of the current market capitalization and the annualized dormancy value.”

Coin days destroyed refers to the number of coins in a transaction multiplied by the number of days it has been since those coins were last spent.

As CryptoGlobe reported Robert Kiyosaki, the highly successful author of the “Rich Dad Poor Dad” series of personal finance books, has pointed to Bitcoin’s crash as an opportunity for investors saying that “crashes are the best times to get rich.”

Kiyosaki suggested that BTC crashing was “great news” as he is “waiting for Bitcoin to crash to $20,000” so he can “up the truck” when the bottom is in.

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