Jurrien Timmer, Global Macro Director of asset management giant Fidelity, evaluated the future trajectory of Bitcoin. In this context, Timmer made a critical warning about BTC. Meanwhile, altcoins are about to witness a serious correction against Bitcoin, according to one analyst.
BTC growth will be limited in the near future!
According to Jurrien Timmer, Bitcoin, which has become the digital equivalent of a “store of value”, is on shaky ground. cryptocoin.comAs you follow, there has been an increase in interest lately with the prospects for the Bitcoin ETF. Despite this, Timmer warns that in the current macroeconomic environment, BTC has outgrown itself.
Timmer draws a parallel between Bitcoin’s potential growth path and the internet’s adoption curve. He says that by applying a range of real rates from 2% to 2%, Bitcoin appears to have reached the +2% side of the spectrum. It also notes that it aligns with current real rates. He suggests that unless these rates start to fall or the adoption curve accelerates, Bitcoin will see limited growth in the near future.
Timmer’s assessment is significant given Fidelity’s interest and involvement in the cryptocurrency space, including its recent ETF filing. Especially in an environment where the SEC continues to delay decisions regarding the approval of such funds. However, Fidelity has filed for a spot Bitcoin ETF in the US. Therefore, the bear-prone tone is likely to raise eyebrows in the crypto community. As with any investment, Bitcoin’s performance continues to depend on several factors. Therefore, it is beneficial for investors to be careful and attentive.
“As Bitcoin dominance increases, altcoins are about to be crushed”
Crypto analyst Benjamin Cowen says altcoins are about to witness a serious correction against Bitcoin. The analyst closely monitors the total market cap of altcoins (TOTAL3) versus Bitcoin. According to Cowen, the chart shows that altcoins will witness massive capital outflows as market participants flock to BTC. In this context, the analyst makes the following assessment:
In July 2019, altcoins were worth the same value as they are today against BTC. While the timeframes don’t have to align perfectly, this chart still shows that altcoins could collectively drop another 40% against BTC. There’s a reason it’s called the altcoin showdown.
However, Cowen states that it is possible for some altcoins to rally in BTC pairs. But he notes that this should not ignore the larger trend he predicts. From this point of view, Cowen notes:
This does not mean that there cannot be occasional jumps in ALT/BTC pairs. History shows us that markets move stochastically. Jumps do not invalidate the macro thesis in ALT/BTC pairs.
The analyst is also evaluating the Bitcoin dominance (BTC.D) chart. In this context, he underlines that it looks consolidated in preparation for another uptrend. The BTC.D index tracks how much of the total crypto market cap is owned by Bitcoin. A rising BTC.D chart shows that Bitcoin is taking a larger share of the crypto markets at the expense of altcoins. The analyst uses the following statements:
It looks like BTC’s dominance is consolidating soon before it turns bullish.
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