By
Godfrey Benjamin
April 20th, 2024
According to the Fidelity Exec Jurien Timmer, both Bitcoin and Apple seem to show similar growth despite different metrics.
According to the Macro Global director at Fidelity Investments, leading crypto Bitcoin (BTC) and tech giant Apple (NASDAQ: AAPL) are on a similar growth path. Jurrien Timmer weighed in on BTC’s recent price movement on Twitter, suggesting that emphasis should be on the crypto’s network and not price. Timer also described the recent lows and highs of BTC as “mostly noise.” As his tweet read:
“Bitcoin has been in a choppy trading range for almost a year now, bouncing between 30k and 65k. The up-or-down debate continues to be a favorite hobby for many, but it’s mostly noise. For Bitcoin, the network is what matters. Let’s dig deeper.”
Fidelity’s Timmer Draws Price Comparisons Between Bitcoin & Apple
Furthermore, Timmer drew attention to BTC’s demand curve after prior comparisons to mobile phone subscriptions and internet adoption under the S-curve. Timmer also named Apple’s incredible growth over the past thirty years as another example of an S-curve. Owing to this, the Director concluded that BTC and Apple are on a similar trajectory despite having different technologies.
According to Timmer, Apple’s network has experienced a 53-fold growth since 1996 based on its sales. In addition, the tech giant’s market value has also experienced a massive 1699-fold increase during that period. Touching on the correlation between Apple’s price, sales growth and valuation growth, Timmer said:
“Apple’s price has grown 1457x since 1996, while its price-to-sales ratio has grown 30 times. If the growth in valuation is an exponent of the growth in sales (per Metcalfe’s Law), then price should increase as an exponent of both metrics. For Apple, it has.”
Timer stated that applying Apple metrics on the BTC network has returned impressive growth. For example, Fidelity discovered that there was a price surge of 640,633x for BTC from its inception until the end of 2021. In addition, the prominent crypto’s price-to-network ratio worked out to 52, which represents an increment of approximately 867 times in the same period. Generally, the aforementioned price-to-network ratio is nearly equal to Apple’s price-to-sales ratio.
Back in October last year, Timmer predicted in a media session that the price of BTC would eventually clock in at $100K. The timeline given by the Fidelity exec for this was 2023. Timmer also asserted that he views BTC as a “convex version” of gold, with gold traditionally seen as a safe-haven asset.
Presently, BTC is trading at the $40K price level.
BTC’s 30-Day ROI Outperformed the Top Six Tech Stocks by a 12% Average Return
Although BTC and equities belong to different categories, recent price movements suggest a high correlation between both assets. Notably, this correlation could be a strong indicator for maturity. Also, as a result of the recent growth in the tech sector, BTC has been outperforming most tech stocks. In fact, according to a previous report by Finbold, in the last thirty days, as of February 13th, BTC had outperformed major tech stocks by an average of 12.24%.