Bitcoin Is “Exponential Gold,” Fidelity Exec Says
Jurrien Timmer, director of global macro at Fidelity Investments, claims that he views Bitcoin, the leading cryptocurrency by market capitalization, as "exponential gold." "In my view, 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 has also touched upon Bitcoin's recent underperformance.
He believes that slowing network growth is the reason why the leading cryptocurrency failed to gain significant traction after reaching its current peak of $73,737 in March.
Gamza Khanzadaev"In my view, this divergence between price and adoption could explain why Bitcoin has slowed down a bit along its path to potential new all-time highs. The pendulum will only swing so far," Timmer said.
Timmer has predicted that the leading cryptocurrency could potentially reach new all-time highs only if the growth of the network somehow accelerates again.
Alex DovbnyaOverall, Bitcoin's network growth is driven by the cryptocurrency's inherent scarcity, monetary and policy cycle, and investor sentiment, according to the Fidelity executive.
Bitcoin's volatile week
On Wednesday, the price of Bitcoin suddenly pared big losses recorded earlier this week due to lower-than-expected US inflation. However, some hawkish comments made by Federal Reserve Chair Jerome Powell threw a wrench in the works for bulls.
At press time, the cryptocurrency is changing hands at $66,794 on the Bitstamp exchange.
Arman Shirinyan
Vladislav Sopov
Dan Burgin
U.Today Editorial Team