Raoul Pal observes similarities in Amazon’s historical price and Bitcoin performance

The founder of blockchain investment company, Fundstrat Global Advisors and Wall Street veteran Raoul Pal has observed similarities in Amazon’s historical price performance with Bitcoin. In a recent blog post on his website, he said that there is an uncanny correlation between the two dating back to 2014.

Raoul Pal, a financial analyst at Bloomberg, observes similarities in Amazon’s historical price and Bitcoin performance. He believes that there is no guarantee that the price of Bitcoin will continue to rise. Read more in detail here: why did bitcoin spike.

Raoul Pal also believes that Bitcoin is undervalued and thinks it should be priced at roughly $100,000.

On Saturday, former hedge fund manager Raoul Pal made an intriguing discovery on the relationship between Amazon’s past price movement and that of Bitcoin since 2013. Metcalfe’s Law states that the value of a network rises exponentially as the number of users on the network grows, according to the co-founder and CEO of Real Vision.

First, the financial strategist looked at the current price of Bitcoin in relation to Metcalfe’s Law. He believes the world’s most valuable digital asset is undervalued. According to an extrapolation based on the Metcalfe Model of the Global Macro Investor, the crypto should be locked around the $100,000 price mark.

H addressed the discrepancy by stating that “there are now less network apps on BTC than ML would desire.” 

Amazon’s stock performance compared to Bitcoin’s

In justifying his position, he referenced a turbulent era for Amazon in the early 2000s, during which the NASDAQ-listed AMZN stocks dropped by as much as 50%.

Raoul Pal observes similarities in Amazon’s historical price and Bitcoin performanceThe performance of Amazon’s shares between 2003 and 2011

He drew attention to the general form of the Amazon stock from 2003 to 2011, which he visually compared to the current shape of Bitcoin’s price.

Raoul Pal observes similarities in Amazon’s historical price and Bitcoin performanceMarket performance of Bitcoin between 2013 and 2022 He investigated Bitcoin’s market structure during the previous 12 months, which he claims is the comparable equal of the e-commerce giant’s 2010 form, to back up his claim of similarities with Amazon.

Though he was unsure, he speculated that Bitcoin may fall much farther to test the $30,000 price level if it were to replicate Amazon’s 2010 price action.

“It indicates that BTC might even hit $30,000, which I doubt (I believe the sell-off is about complete), but who knows! It’s close enough for context, but it never uses fractals. They’re merely there to give you a sense of what’s going on. The BTC fractal is longer in duration and more volatile than AMZN […]. It’s just noise in the end. The reality is the log chart, which is an approximation of Metcalfe’s Law in and of itself. Your location is too large for your time horizon if it isn’t noisy to you “Pal came to a conclusion.

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