Jurrien Timmer, Director of Global Macro at Fidelity, offered a stern warning on the course that Bitcoin would take in the future. Timmer believes that the Bitcoin, which has evolved into the modern day “store of value,” may be in trouble.
Timmer warned that despite a recent spike in interest that may have been sparked by anticipation of a Bitcoin ETF, the digital asset may be surpassing itself given the present financial environment.
Timmer compared the possible development path of Bitcoin to the internet’s adoption curve. Using a real rate range of +2% to -2%, he observed that Bitcoin appeared to have crossed over to the +2% side of the spectrum, in line with current actual rates.
He asserted that the cryptocurrency may have constrained growth in the near future until these rates start to fall or the adoption curve quickens.
According to CoinGecko, the market capitalization of Bitcoin as of this writing is $593.63 billion, with a value of $30,557.26. The 24-hour trading volume of the digital currency has surpassed $15 billion, showing a tiny gain of 0.9%.
Given Fidelity’s interest in and participation with the cryptocurrency market, including its most recent ETF registration, Timmer’s opinion is noteworthy. Notably, the company has applied for a Bitcoin ETF in the United States even though the SEC keeps delaying its judgement on whether to approve such products. He may have raised some eyebrows in the bitcoin sector with his negative tone. As with any investment, a number of factors continue to affect how Bitcoin performs, so investors should proceed with care and due investigation.
