Bitcoin
Fidelity sees a bright future for crypto Bitcoin: ‘it’s exponential gold’
Jurrien Timmerdirector of global macro at Fidelity, recently stated that Bitcoin represents an aspiring store of value, comparing it to “exponential gold”.
According to Timmer, Bitcoin is emerging as a key player in the store of value space, offering potential for long-term growth and stability.
This vision highlights the growing recognition of Bitcoin as a valid alternative to traditional stores of value like gold, backed by one of the leading global financial institutions. Let’s see all the details below.
Bitcoin is exponential gold, according to global macro director at Fidelity
As predicted, Jurrien Timmer, director of global macro at Fidelity, recently released a noteworthy statement about Bitcoindescribing him as “exponential gold” and an emerging player in the “store of value” team.
Timmer’s comments, shared through a series of posts, detail Bitcoin’s evolving role in the financial ecosystem. By comparing your growth trajectory to revolutionary technologies such as the Internet and mobile phones.
Timmer highlighted Bitcoin’s unique position in the market, emphasizing its scarcity and growing acceptance as a digital asset. These factors contribute to its potential as a long-term store of value, similar to gold.
In his posts, he suggested that the rate of adoption and growth of the network are critical elements for evaluating Bitcoin. Although Bitcoin is still in its early stages compared to traditional assets, its adoption is accelerating at an exponential rate.
Supporting the thesis that it could become a significant store of value in the future. In particular, Timmer stated the following:
“The graphs show Bitcoin’s growing network along a simple power curve. The number of non-zero addresses is converging towards this power curve, with the price of Bitcoin swinging around it like a pendulum. This is Bitcoin’s only series of boom and bust cycles.”
Timmer’s approval aligns with a broader trend among institutional investors recognizing Bitcoin’s potential. His point of view reinforces Bitcoin’s growing legitimacy in the financial sector, suggesting it could play a role vital role in future investment strategies.
Growth slows, but the price continues to rise
Timmer concluded his posts by noting that the Bitcoin network’s growth has slowed in recent months while its price has continued to rise:
“In my opinion, this divergence between price and adoption could explain why Bitcoin has slowed down a bit on its path towards possible new all-time highs. The pendulum will only swing so far. For new highs to continue, the network may need to accelerate again.”
This view reflects the idea that, despite short-term fluctuations, Bitcoin’s future as a store of value remains promising, with the potential to grow exponentially as its adoption continues to spread.
The Role of Short-Term Investors in Market Direction
Network data shows that Bitcoin is approaching the “realized price” of short-term holders, a historically significant retest for BTC.
Julio MorenoHead of Research at CriptoQuantrecently discussed on X how close BTC is to this critical metric, which has influenced market behavior in the past.
The “prezzo realizzato” is an on-chain indicator that tracks the average price at which investors purchased their coins. When the cryptocurrency’s spot price exceeds this value, the average holder makes a profit.
On the contrary, if the spot price is lower, investors will suffer a loss. Currently, the price of Bitcoin is close to the price realized by short-term holders (STH), those who purchased their coins in the last 155 days.
The graph of CriptoQuant shows that Bitcoin is about to retest the realized price of STH. This indicator has historically represented a turning point for the asset, with different results in the past.
During two of the previous retests, Bitcoin found support and bounced higher, continuing its upward momentum. In three other cases, however, BTC did not maintain its level and suffered a drop between 8% and 12%.
If Bitcoin continues on its current downward trajectory, a retest of the realized price of STHs could be imminent. Moreno highlights that previous interactions between the spot price and this level have often anticipated significant movements in the market.
If BTC fails to maintain the level, the price could fall to around $60,000.
In conclusion, with another possible retest of STH’s realized price coming up, Bitcoin’s behavior in the coming days will be crucial.