How to value Bitcoin both in the long and short time (webinar)

Stefano Gianti
Swissquote
Published in
5 min readMar 4, 2021

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Valuing Bitcoin over the Short and Long term is a webinar organized by Swissquote Bank with the 21Shares team. 21Shares is the world’s first digital asset, ETP issuer.

The combination of two investor-oriented entities has made this webinar a beneficial watch for investors looking into investing in the Bitcoin market.

This webinar assesses the possible returns based on an in-depth analysis of an investment strategy that focuses on Bitcoin and its performance.

The webinar is split into two sections. The initial part focuses on the short term evaluation of Bitcoin, and then it evolves gradually into the assessment of Bitcoin for investment over the long term.

www.swissquote.com/crypto

This webinar assesses the outlook of getting profitable returns based on an in-depth analysis of an investment strategy that focuses on investing in Bitcoin through the 21share Bitcoin trackers, the three indexes that 21Shares has, and a shorts fund that can help interested investors get a feel over the Bitcoin market.

This more than an hour-long webinar is comprehensively focused on helping the viewer understand all the multiple aspects of a portfolio strategy that targets investments in some version of Bitcoin investment.

An exciting thing disclosed in the webinar is that the Bitcoin options are no different from usual futures as they also have expiry dates. The webinar also clarifies the reasons behind the sharp fluctuations in Bitcoin at specific points, making investors use caution in investing. The overcorrections and over liquidations are discussed, and their causes are also explained.

As a short term strategy, it is useful to keep an eye on upcoming option expiry dates. If an expensive option is due to expire, it will create turbulence in Bitcoin prices worldwide, and price volatility will be seen.

The webinar focused on explaining how we can invest in Bitcoin by analyzing the holder information in the coinbase. The coinbase shows who is holding the bitcoin and who is buying, and who is selling. This information allows smaller investors to see which institutional buyers are getting into positions that can affect their pricing and will enable them to book gains over the short term.

While we have done our best to summarize this information-packed hour into this article, to get the most of it, watch the entire webinar here:

If you want to read on, the critical points of the webinar are mentioned below.

The webinar educates viewers about why we should try to invest in robust emerging security that is doing well, even if the share price tends to move about dramatically on the market or in terms of gains.

Things to watch out for in Bitcoin are their unrealized profits (and losses), the size of their market presence, and the level of adoption of a specific currency.

These factors and how to assess them are explained in the webinar. Institutions that are investing in Bitcoin focus on specific cryptocurrencies, and this is making these currencies more popular. Many long term investors are looking to hold these cryptos to get gains.

As investors looking for investment growth options, we need to realize that there is no wealth creation without top-and-bottom-line growth, which can be monitored easily.

As such investors, we have to realize that to get a valuation equivalent to that of gold, Bitcoin would have to be priced at $535'000.

The webinar explains how and why Bitcoin is retaining its growth momentum. It also explains why adding Bitcoin to a portfolio makes investment sense for both long and short term strategies. Many institutions are now adopting Bitcoin as an investment option. Bitcoin is rightly being called the digital version of gold due to the ease of investing in it, the fact that it is relatively tamper-proof. The fraud resistance that it offers compared to gold is also a strong pitching point for institutional investors.

The webinar also runs through a lot of data that shows how not all Bitcoins are the same, and investors need to work out market capitalization through multiplying circulating supply with the price. The adoption life cycle of Bitcoin is only in the take-off stage as less than 2.5% of internet users are using cryptocurrency. This is nothing and shows just how much potential Bitcoin has to fulfil.

The webinar educates viewers on assessing cryptocurrencies and concludes with a brief overview of potential cryptos available in the market for investors to benefit from. The market potential for Bitcoin is around seven to eight trillion dollars and a price prediction of $390,000 per Bitcoin.

While we have done the best we can to summarize this information-packed hour into this article, to get the most of it, watch the entire webinar here:

…and slides

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The content of this article (including market commentary, market data and observations) is not a work product of any research department of Swissquote or its affiliates. This material is intended to highlight market action and does not constitute investment, legal or tax advice.

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Stefano Gianti
Swissquote

Education Manager at Swissquote, Member of SIAT_Italia (the Italian Society of Technical Analysts) and IFTA (International Federation of Technical Analysts).