Bitcoin
Bitcoin is “exponential gold”, says Fidelity executive
Alex Dovbnya
Jurrien Timmer, director of global macro at Fidelity Investments, identified the reason why Bitcoin has not yet reached a new all-time high
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Jurrien Timmer, director of global macro at Fidelity Investments, claims that he sees Bitcoin, the leading cryptocurrency by market capitalization, as “exponential gold.” “In my opinion, bitcoin is exponential gold and an aspiring player on the store of value team,” he said.
The reason behind Bitcoin’s underperformance
In his social media posts, Timmer also addressed Bitcoin’s recent underperformance.
He believes that slowing network growth is the reason why the leading cryptocurrency has failed to gain significant traction after reaching its current peak of $73,737 in March.
“In my opinion, this divergence between price and adoption could explain why Bitcoin has slowed down a bit on its way to possible new all-time highs. The pendulum will only swing so far,” Timmer said.
Timmer predicted that the leading cryptocurrency could potentially reach new all-time highs only if network growth somehow accelerates again.
Overall, the growth of the Bitcoin network is driven by the cryptocurrency’s inherent scarcity, the monetary and political cycle, and investor sentiment, according to the Fidelity executive.
Bitcoin’s volatile week
On Wednesday, the price of Bitcoin suddenly pared the large losses recorded earlier this week due to lower-than-expected US inflation. However, some aggressive comments made by Federal Reserve Chairman Jerome Powell was a headwind for the bulls.
At press time, the cryptocurrency is trading for US$66,794 on the Bitstamp exchange.
About the author
Alex Dovbnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the booming industry – from price analysis to Blockchain disruption. Alex has authored over 1,000 stories for U.Today, CryptoComes, and other fintech media outlets. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets. He can be reached at alex.dovbnya@u.today.