The researcher spoke about the potential profitability of investments in bitcoin at current levels

The researcher spoke about the potential profitability of investments in bitcoin at current levels

The researcher talked about the potential return on investment in bitcoin at current levels

Analyst Matt Rowe compared the dynamics of the Mayer Multiple indicator with the historical return on investments in bitcoin. He came to the conclusion that buying cryptocurrencies from current levels can bring “X” to patient investors.

The Mayer Multiple indicator dropped to 2011 and 2015 levels. This indicates a significant gap between the current digital gold price and the 200-day moving average. The latter is perceived by many as a kind of border between bull and bear markets.

According to Rowe, if you buy bitcoin for $1,000 from the current metric and hold the asset for 60 days, the amount received β€œat the exit” will be in the range of $1,000 (break-even point) to $2,300.

Other things being equal, holding an asset for 180 days will historically yield between 1.9x and 50x. That is, the cost of investments per $1,000 will be in the range of $1,800-$50,000.

A similar investment in a year, according to Rowe, will turn into an amount between $50,000 and $250,000 .

The researcher emphasized that the calculations are entirely based on historical performance, which does not guarantee equally impressive future results.

“The macroeconomic recession has entered the game, this time it may be different” – Matt Rowe noted.

He added that he is bearish in the context of the current market situation. However, in the long run, the likelihood of Bitcoin growth is higher compared to the short term.

Earlier, the head of Galaxy Digital, Mike Novogratz, expressed the opinion that the easing of the Fed’s policy will be the driver of the new Bitcoin rally.

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