- Bitcoin has even more potential, with Fidelity Director Jurrien Timmer expecting a $ 100,000 increase by 2023.
- Timmer believes the recent bitcoin rally will still be fueled by momentum traders.
- Bitcoin’s 31% rally in October is “sustainable” and “not a bubble about to burst,” Timmer said.
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The ongoing bitcoin rally may continue to record highs over the next two years, according to Global / Macro Fidelity Director Jurrien Timmer.
Based on his proprietary supply and demand model, Timmer sees bitcoin hit $ 100,000 by 2023 as dynamic traders start buying in the recent rally.
“This rally came with little fanfare and doesn’t seem to be driven by momentum hunters. The percentage of coins held by short-term ‘tourists’ has fallen to just 15%. That tells me there could be room to run if momentum chasers pile up in, “Timmer noted.
Most of the lowest bitcoin prices occurred when coins held by short-term “tourists” were closer to 30%, he added.
Bitcoin rose 2% to $ 56,917 on Tuesday and is up 31% so far in October, with the popular cryptocurrency recovering several key resistance levels.
But Timmer does not view bitcoin’s recent move as “excessive,” based on the relative price action between bitcoin and gold. “It’s actually a pretty lasting decision, and it’s not a bubble that’s about to burst,” he said Wednesday in an interview with CNBC.
If the price of bitcoin reaches $ 100,000, many believe the cryptocurrency could become a threat to the US dollar and its status as the world’s reserve currency. But Timmer doesn’t say much.
“I really don’t think bitcoin threatens the dollar or the dollar’s reserve status. Bitcoin’s value proposition is that ultimately it goes from just a store of value to a medium of exchange, and it depends on the second layer [developments] that are under construction right now, ”said Timmer.
In fact, Timmer believes the growing reach of bitcoin could bolster the US dollar’s status as a reserve currency used around the world.
“May be [bitcoin] in fact guarantees that the dollar will retain its reserve status because all of a sudden the currency will be available in more remote parts of the world, through bitcoin, and it will probably still be tied to the dollar in some way or another. another, ”Timmer mentioned.