According to Jurrien Timmer, global macro director at wealth management giant Fidelity, the ongoing rally could push Bitcoin to record highs in the next two years.
Based on the popular supply and demand model, Timmer predicts Bitcoin will hit $100,000 by 2023 as momentum investors start to enter the final rally.
“This rally came with little fanfare and does not seem to be driven by momentum seekers. The percentage of coins held by short-term ‘tourists’ has dropped to just 15%. This tells me that if there are more acceleration seekers, there may be room for escape.”
Timmer added that most of the price dips in Bitcoin occur with short-term “tourist” holdings approaching 30%.
bitcoin It rose 2% to $56,917 on Tuesday and has gained 31% so far, surpassing several key resistance levels in October. However, Timmer does not see Bitcoin’s recent move as “extreme”, based on the relative price action between Bitcoin and gold.
“This is actually a pretty sustainable move and not a bubble that is about to burst,” he told CNBC on Wednesday.
If Bitcoin reaches the price of $100,000, many people will cryptocurrency believes its currency could be a threat to the dollar. But Timmer doesn’t think so:
“I don’t think bitcoin really threatens the dollar or the dollar’s reserve status. Bitcoin’s value proposition is that it ultimately ceases to be just a store of value, but continues to be a medium of exchange.”
In fact, Timmer believes that the increased reach of Bitcoin could strengthen the status of the US dollar as the reserve currency used globally.
“Actually, maybe [Bitcoin] It allows the dollar to maintain its reserve status because suddenly a currency will be available in more distant parts of the world via Bitcoin and will probably still be somehow still tied to the dollar.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.