Fidelity strategists are revising their 2022 outlook for bitcoin after it fell below the pivotal $40,000 level.
On the 26th local time, Fidelity macro strategist Jurrien Timmer said on social media that he was surprised that Bitcoin fell from $69,000 in November last year but failed to hold the key $40,000.
“Based on demand models and on-chain dynamic metrics, I think Bitcoin’s bottom is $40,000, but the current price is $35,000.”
He believes that from a trend point of view, Bitcoin has the potential to rise against the trend.
When it comes to fundamentals, the analyst noted that “the lower the price of Bitcoin falls, the more undervalued its fundamentals are.” He said that despite the recent rough ride Bitcoin has had, its strong The fundamentals are intact.
“Obviously, Bitcoin has suffered a liquidity crisis, but unlike tech stocks that didn’t turn a profit, Bitcoin has a fundamental underpinning it.”
It is worth mentioning that Fidelity predicted in a recent report that in 2022 more sovereigns will follow El Salvador to buy Bitcoin, and may even see central bank purchases.
At the time of writing, Bitcoin rose to $36,700 and the cryptocurrency has fallen 22% this year.