In an interview on Yahoo Finance Live, Morehead outlines his bullish thesis, saying that the top crypto asset could hit $700,000 once everyone with a smartphone connects to the Bitcoin network.
“We did a study showing the number of people using Bitcoin over the years and [the] price of Bitcoin. Both of those data series went up by an order of magnitude every two years. If that kept going, that would put Bitcoin at $700,000 when everybody with a smartphone uses it. Ten years’ time is a reasonable forecast.”
In the last 10 days, Bitcoin has rallied nearly 40% from its lows just under $30,000. With the price of Bitcoin currently sitting just under $42,000, according to CoinGecko, BTC would require a 1,570% appreciation to hit Morehead’s target of $700,000.
According to data from Glassnode, Bitcoin has experienced a 41% decline in active entities since January. In the past week, however, the number of active entities shot up by 30%.
“Bitcoin has seen a resurgence in Active Entities over the past week, rising by 30% from [250,000] to [325,000] active entities per day.
This degree of activity was sustained in July 2020 when BTC prices were around [$11,300] in Q2-2020.”
Glassnode defines active entities as the number of unique entities “that were active either as a sender or receiver.”
Morehead predicts that Bitcoin will resume its bullish trend in the midterm due to a variety of fundamental catalysts.
“ The macro story is so positive. There is so much money being printed and so many institutions are coming into the space that over the next twelve months the markets are going to resume their rally.”