Paul Tudor Jones bitcoin fractal hints at a attainable explosive BTC rally
Based on the fractal, Bitcoin is in the early stages of a lengthy rally that could allow BTC to experience exponential growth over the long term.
Bitcoin versus gold price fractal. Source: Bloomberg
Bitcoin may be on the same trajectory as gold
There are two main reasons why Bitcoin might be following the macro trend that gold saw from the 1970s. First, BTC has a fixed offering that cannot be expanded, making it an attractive hedge against inflation. Second, BTC shares the same safe haven characteristics as gold.
In August 2020, the Winklevoss twins, billionaire Bitcoin investors behind the major U.S. cryptocurrency exchange Gemini, put forward an argument as to why the BTC price could soar to $ 500,000.
In the work, they identified the properties of Bitcoin that make it a viable safe haven. The Winklevoss emphasized that, unlike gold, BTC is not exposed to any potential supply shocks. They write:
"Deliver. Bitcoin is not just a scarce commodity, it is the only known commodity in the universe that has a deterministic and fixed supply. As a result, Bitcoin is not subject to any of the potential positive supply shocks that gold (or a commodity for that matter) will experience in the future." could. "
Because of this property of Bitcoin, investors continually argue that BTC is a better safe haven than gold. This comparison between BTC and gold leads many to believe that Bitcoin is on a path for long-term exponential growth.
Su Zhu, the CEO of Three Arrows Capital, one of the largest funds in the cryptocurrency space, said
“Any sustained decline in BTC's value in US dollars would be extremely optimistic as it would turn out to be following the gold fractal from the 1970s as detailed below by Paul Tudor Jones – the legendary macro investor who successfully used fractals to predict the stock market cycle used in the 1980s. ”
There is also a massive gap between the valuation of Bitcoin and gold. Gold's market capitalization is currently estimated at $ 9 trillion. By comparison, Bitcoin's market capitalization is less than 4% of its gold valuation, creating a gap between the two assets.
Investors say Bitcoin's origins give it strength
Tyler Winklevoss also noted that the anonymity of the creator of Bitcoin is a major positive factor for the digital ass.
He said Bitcoin turned into a fortune of $ 330 billion and yet Satoshi Nakamoto, the creator behind it, remains anonymous.
This only legitimizes and strengthens the perception of Bitcoin as an appropriate store of value. He said:
"The fact that we don't yet know who Satoshi is # Bitcoin's market cap is $ 330 billion. This is proof that Bitcoin speaks for itself."