Bitcoin’s risk characteristics have become ‘more attractive’

Bitcoin’s position as the most profitable asset needs no mention, but leaders of Ikigai Asset Management featured in a Coinist Podcast to discuss the correlation between Bitcoin network activity and network value. Travis Kling, CIO of Ikigai started off the discussion by pointing out,

“BTC is a risk asset with a specific set of investment characteristics that have become increasingly more attractive.”

Kling added that, from a macro perspective, Bitcoin may come down to an unlikely $6000 – $7000 depending on the impending stress levels coming from the traditional asset class. Talking about the recent bearish trends within the crypto ecosystem, he also highlighted that cash (fiat) tax payments may also be the potential cause for drawing liquidity for the traditional banking sector.

Although Bitcoin’s dip below $6000 was deemed unlikely, Hans Hauge, Ikigai’s senior quantitative researcher, mentioned that “the same way that there’s a relationship between the price of the stock and the earnings per share of a stock, we’re pretty sure there’s a relationship between network value and network activity.”

The entrepreneurs explained that the only way to identify the right time to buy Bitcoin is through “some kind of relationship.” While most average investors may compare they buying price to the historic prices, Hauge insisted that,

“or you can look at the price right now relative to the network activity right now and what that relationship looks like relative to prior periods.”

He further added that this may help investors get a sense of when it might be a more opportune buying time versus when they might be near a bubble pop.