Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The Fidelity boss believes that the recent Bitcoin price rally is more sustainable and not just driven by short-term bulls. He also believes that Bitcoin doesn’t pose any threat to the USD.
All eyes are currently on Bitcoin as the world’s largest cryptocurrency continues to gain strength. Jurrien Timmer, the director of global macro at Fidelity Investments has given his own prediction for BTC.
During his interview with CNBC, Timmer said that he expects the BTC price to touch $100K levels by 2023. Well, this might look a bit far-stretched for Bitcoin enthusiasts who are expecting BTC to touch these targets by the year-end.
During the interview, Timmer discussed Bitcoin prediction models, market outlook, and shared his opinion on the current market rally. He further noted that 30% of the Bitcoin rally this month hasn’t come through momentum traders.
Thus, he was indicating that it has been driven by organic spot demand and can possibly extend further. The Fidelity boss said he expects BTC to touch $100,000 by 2023. Speaking to CNBC, Timmer noted:
“This has not been a momentum-fueled run by short-term speculators, so that gives me some confidence that this actually is a pretty sustainable move and is not a bubble that is about to burst. The trajectory is up and so far there really is no evidence that this is a bunch of momentum chasers bringing this up to $57,000.”
Fidelity Pushing Crypto Adoption
Fidelity Investments has been in the game of crypto for a long time. The investment giant has its own crypto wing Fidelity Digital Assets and through which it initiates several developments and investments in the crypto space.
Furthermore, commenting on this year’s BTC price rally, Bitcoin (BTC) doesn’t see its recent move as “excessive”. This is depending on the relative price action between Bitcoin and Gold. “This is actually is a pretty sustainable move, and it’s not a bubble that’s about to burst,” he added.
Additionally, Timmer also called both these asset classes complementary to each other. Timmer said:
“Bitcoin is a more convex version of gold. It has an ever scarcer supply and gold does not have the network dynamics that bitcoin does, so it makes sense that bitcoin would outperform gold. Bitcoin and gold are two different players on the same team.”
Timmer also touched down on the most-debated topic of whether if Bitcoin can replace the USD in the long term. “I really don’t think bitcoin threatens the dollar or the dollar’s reserve status. Maybe it actually further ensures that the dollar will maintain its reserve status…and it’s still probably going to be connected to the dollar in some way. Bitcoin’s value proposition is that ultimately it goes from just being a store of value to also being a medium of exchange, and that depends on second layer [developments] that are being built right now,” added he.
A number of market analysts have started giving the price prediction for BTC by the year-end. Analysts at British financial giant Standard Chartered believe that the BTC price can touch $100K either by the year-end or by early 2022.
Furthermore, the market has very high hopes that the Bitcoin ETF will arrive in the US market this month ahead. this can add fuel to the upcoming BTC price rally.