Macro expert and CEO of Real Vision, Raoul Pal, examines the historical price development of the e-commerce giant Amazon and compares it with the performance of Bitcoin (BTC) since 2013.

The former CEO of Goldman Sachs told his 863,300 Twitter followers that Amazon (AMZN) has complied with Metcalfe’s law, which states that the greater the number of users on the network, the greater the value of a network.

Pal points out that Amazon was a volatile stock in the early 2000s, falling sharply as high as 50%.

“It looked like this between 2003 and 2011.”

According to Pal, Amazon’s previous price action is similar to Bitcoin’s current price action.

Pal also took a look at Amazon’s market structure in 2010, which he believes is very similar to Bitcoin’s price movement over the past 12 months or so.

“In short, Amazon 2010 looks like this …”

“And BTC so …”

According to the macro expert, the benchmark cryptocurrency could retest key support at $ 30,000 if Bitcoin follows Amazon’s price action in 2010.

“It shows BTC could retest $ 30,000, but I doubt it (I think the sell-off is about to close).” Because BTC Fractal has a longer term than AMZN and is more volatile. In the end, it’s all about noise. The new log plot is accurate and in itself an approximation of Metcalfe’s Law. “

Pal also added that the price of Bitcoin would fluctuate around $ 100,000 under Metcalfe’s Law, suggesting that BTC is undervalued well below its current price of $ 42,144.

“BTC is cheap compared to Metcalfe’s Law…. (And has been for a long time – I guess because there are currently fewer network applications on BTC than on ML [định luật Metcalfe] Desire)”.

You can see the price of bitcoins here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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