A popular crypto analyst says a key Bitcoin (BTC) chart is pointing to a major bullish move over the long-term.
In a new video update, the InvestAnswers host tells its 441,000 YouTube subscribers that the number of users connected via BTC is a signal that the crypto king will eventually unleash a massive onslaught.
The analyst brings up Metcalfe’s Law, which states that the value of a communications network is proportional to the square of the number of connected users in its system.
“Basically, I proved that 83-84% is Bitcoin [and Ethereum’s] The price is explained by the number of daily active users, addresses and the network effect. But if you look at this chart right here, this one chart makes it very clear what will happen to the price of bitcoin in the long run. No hopium, just math.”
Source: InvestAnswers/YouTube
The crypto strategist says Bitcoin’s token supply is dwindling, which coupled with rising demand should mean BTC’s price will rise significantly.
“The amount of bitcoin to be mined, this amount of exchange balances and future supply for mining is really low and going to zero…
The number of on-chain changes will increase forever as long as the Bitcoin protocol survives, and we all know from Economics 101 that when demand increases and supply decreases, price increases. It is the most fundamental lesson in economics.”
The top crypto asset by market cap is trading for $22,992 at the time of writing, down 2.5% over the past 24 hours.
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