Fidelity Analyst Jurrien Timmer Reveals Key Factors for Bitcoin to Reach New AllTime Highs

Fidelity Analyst Jurrien Timmer Reveals Key Factors for Bitcoin to Reach New AllTime Highs

Fidelity Investments’ global macro director, Jurrien Timmer, believes that in order for Bitcoin (BTC) to reach new all-time highs (ATHs), a crucial event must take place.

Timmer, who has a following of 186,600 on the social media platform X, suggests that increased adoption of Bitcoin may be necessary for the cryptocurrency to achieve new ATHs.

He notes, “The growth of Bitcoin’s network has slowed down recently, while its price has continued to rise. This discrepancy between price and adoption could be the reason why Bitcoin’s progress towards new highs has slowed. The pendulum can only swing so far. For the momentum of new highs to continue, the network may need to accelerate once again. Could this be influenced by the next phase in the fiscal dominance theory (i.e., monetary subordination)?”

Timmer also points out that he views Bitcoin as a viable competitor to gold as a store of value, and attributes the growth in Bitcoin’s price to its scarcity and central bank monetary policies.

He explains, “In my opinion, Bitcoin is like digital gold and is a contender in the store of value category. My research indicates that Bitcoin’s price is primarily driven by the expansion of its network, which is fueled by its unique scarcity feature, as well as the monetary and fiscal policy environment, and of course, overall sentiment.”

The analyst is of the opinion that Bitcoin’s adoption curve is on track, as evidenced by the increase in non-zero addresses, but suggests that further growth is needed for the price to begin its ascent.

He illustrates, “The graph below displays Bitcoin’s expanding network following a simple power curve. The number of non-zero addresses has been approaching this curve, with Bitcoin’s price moving in a pendulum-like fashion around it. This captures Bitcoin’s distinctive pattern of boom-bust cycles.”

At the time of writing, Bitcoin is priced at $66,676, experiencing a slight decrease in the last 24 hours.

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