“Given the level of traffic going through the network right now, bitcoin is probably overvalued by $1,000 to $1,500,” said Masters. He made that comment on 21 September after bitcoin was trading just below $8,000. On the strength of Masters’s prediction the price could now be nearing the bottom at circa $6,500.
However, the CoinShares chairman provided the caveat that network activity “is not the only thing going on” that could impact the price.
He thinks “good products, like ours [DGLD] and others, will bring the confidence back in bitcoin” plus added to that “halving does have an impact” on price. Bitcoin block rewards paid to miners will halve in May next year to 6.25 BTC, which will reduce bitcoin’s inflation rate – curtailed supply should increase the price of the leading crypto asset.