A popular crypto analyst is taking a macro look at Bitcoin (BTC) to get a clearer picture of where the leading crypto asset is heading after several months of volatility.
In a new strategy session, Benjamin Cowen first tells his 719,000 YouTube subscribers that regardless of short-term price fluctuations, Bitcoin and the crypto space, in general, will continue to grow for years to come.
“The understanding that I have is that Bitcoin generally trends higher with time. The asset class is growing. There’s obviously a ton of great news. The user base is growing.
This is very likely going to be an asset class that continues to explode over the next several years and as we continue on into this decade.”
The analyst goes on to discuss Bitcoin’s running return on investment (ROI), where the baseline metric of one accounts for the break-even price.
“To give you an idea of recognizing this in a more practical way, rather than just saying two years ago the price was 1/10th of what it is today, is to go look at some of the longer-term running averages or running ROIs.
One of the things we can look at is the three-year running ROI. Historically, it doesn’t really go below one that much.”
Cowen next mentions how crypto investing can sometimes be a matter of perspective, and how the macro view inevitably reveals BTC as a long-term gainer.
“The moral of the story is that in any given year you could always see a loss. We’re sitting at a one-year ROI loss right now, just like we were in the summer of 2020 as well.
In any given year, you might not see the best returns. If you look at two years, there still can be phases that you could still experience a drawdown from when you had bought two years before.
Three years, you’re very hard-pressed to not find a time where you’re not break-even or above. And your four-year ROI has always historically been above one.”
The analyst concludes by saying,
“When you look at the asset class as a whole, time is on our side as we continue to just trend higher.”
At time of writing, Bitcoin is trading sideways and priced at $38,947.
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