In charge of global macro at Fidelity Investments, Jurrien Timmer has dubbed Bitcoin “exponential gold,” highlighting its potential as a store of value.
Timmer expressed his opinions on the success of BTC and the elements influencing its market route in recent social media entries. He claimed that slower network development was the reason behind Bitcoin’s disappointing performance even if it peaked in March at $73,737.
“This difference between price and usage could help me understand why BTC has slowed down a bit on its road to what could be new all-time highs. “Timmer remarked.
Only so far can the pendulum swing, Timmer said. To attain fresh all-time highs for Bitcoin, he argued, network expansion must experience a boom.
Bitcoin’s Network Growth Dynamics
Timmer underlined that changes in monetary policy, how investors feel, and natural scarcity of BTC determine the expansion of its network. All of these factors influence the coin’s usage frequency as well as its value storage performance.
Signs in the economy caused the market for Bitcoin to be erratic recently. BTC recovered from its previous losses after US inflation numbers fell below predicted. But wary remarks from Federal Reserve Chair Jerome Powell sapped the enthusiasm, therefore altering the dynamics of the market.
On the Bitstamp market, BTC’s most current pricing is $66,494. Those in the financial industry are still debating how BTC’s place in investment portfolios is altering and how it may be employed as a buffer against inflation and economic unrest.
Timmer’s studies place Bitcoin in the larger framework of the financial markets worldwide, where its performance is observed alongside that of conventional assets as policies and the state of the economy evolve.
