Bitcoin Pricing Models – Round 2 – Bitcoin USD (Cryptocurrency:BTC-USD)

Catching up to now

In my first ever article on SA I gave a brief review of two Bitcoin (BTC-USD)(COIN)(OTCQX:GBTC) pricing models, “Moon Math” and the Fundstrat model from Tom Lee. Both models left me with a bad taste in my mouth. It’s not that they don’t represent the data, it’s just that I found it too complicated to verify and validate what was being suggested. In the case of Moon Math, the average daily returns will change over time, so I feel that the channel approach will become less predictive over time. With the Fundstrat model, I wasn’t clear why the price was used as an input to predict the price, or how exactly the number of “users” was being estimated. But, enough about that. If you want to read more you can visit that article directly.

The new models

Today I want to talk about two very popular Bitcoin pricing models. The first is Willy Woo’s NVT, and the second is the Mayer Multiple. Both of these models, from a high level I find to be of high quality. However, at…