Fidelity Investments’ global macro director, Jurrien Timmer, suggests a crucial event must take place for Bitcoin (BTC) to reach new all-time highs (ATHs).
Timmer, addressing his 186,600 followers on the social media platform X, points out that an increase in Bitcoin adoption may be necessary for the cryptocurrency to achieve fresh ATHs.
“The growth of Bitcoin’s network has been slowing down in recent months, while its price continues to rise. This discrepancy between price and adoption could be a reason for Bitcoin’s slowdown on its path to potential new ATHs. The pendulum can only swing so far. To sustain these new highs, the network might need to accelerate once again. Could this be fueled by the next phase in the fiscal dominance theory (i.e., monetary subordination)?”
The analyst also states that he sees Bitcoin as a viable competitor to gold as a store of value, attributing the growth in Bitcoin’s price to its scarcity and central bank monetary policy.
“In my opinion, Bitcoin is the new gold and a rising star in the store of value arena. My research indicates that Bitcoin’s price is primarily influenced by the expansion of its network, which is driven by Bitcoin’s unique scarcity feature, as well as the cycles of monetary and fiscal policies, not to mention market sentiment.”
The analyst believes that while Bitcoin’s adoption curve is progressing as expected, it needs a boost for the price to start climbing.
“The graph below illustrates Bitcoin’s expanding network following a simple power curve. The number of non-zero addresses has been aligning with this power curve, with Bitcoin’s price fluctuating around it like a pendulum. This is reflective of Bitcoin’s distinctive series of boom-bust cycles.”
Bitcoin is currently trading at $66,676 at the time of this writing, showing a slight decline in the last 24 hours.
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