Fidelity’s Director of Global Macro, Jurrien Timmer, recently made a significant statement regarding Bitcoin. He called it “exponential gold” and an emerging powerhouse in the “store of value” sector. Timmer made a series of pro-Bitcoin comments on X (formerly Twitter), expressing his bullish sentiment on the leading digital currency’s long-term potential.
Timmer’s comments came despite the top cryptocurrency by market capitalization losing some value in the past 48 hours. Here’s its performance over the last five days:
The last 24 hours were particularly bearish for the digital currency, with its value dropping 2%. A week ago, Bitcoin was trading at around $70,000, and a significant price increase was predicted. However, some Bitcoin miners reportedly had to sell some of their holdings to cover mining operations, leading to a market correction and a bearish swing.
Fidelity Remains Bullish on Bitcoin
Fidelity’s own Bitcoin Exchange Traded Fund (ETF) did experience an outflow of over $100 million on June 13th, a noteworthy sum. However, these short-term fluctuations don’t faze the company’s top executives. It is also in the process of launching a new spot Ethereum ETF.
Timmer, in particular, remains very bullish on Bitcoin and is unlikely to change his stance in the near future. He compared Bitcoin and Ethereum’s performance to historical, technological innovations like mobile phones and the internet, attributing their success to their ingenious network design. He specifically highlights Bitcoin’s scarcity and growing global acceptance as two crucial qualities for a store of value.
Timmer concludes by stating:
“The growth of Bitcoin’s network has slowed in recent months, while its price has continued to rise. In my view, this divergence between price and adoption could explain why Bitcoin’s path to potential new all-time highs has slowed. The pendulum can only swing so far. For new highs to continue, the network may need to accelerate again.”
Timmer’s endorsement comes when Fidelity is heavily invested in the space. This sentiment is shared by many other institutional investors worldwide, which is interesting considering how many of these major players dismissed crypto assets just a few years ago. Some even laughed it off, comparing it to a Ponzi scheme.
However, the strong performance of Bitcoin ETFs in the first two quarters of 2024 suggests a significant shift in sentiment. Major asset managers are now keen to gain exposure to Cryptos, with some, like Timmer, advocating for a more aggressive investment approach in the innovative space.
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