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Bitcoin is ‘exponential gold,’ says Fidelity exec
Alex Dovbnja
Jurrien Timmer, global macro director at Fidelity Investments, explained why Bitcoin has yet to reach a new all-time high
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Jurrien Timmer, global macro director at Fidelity Investments, affirmations which considers Bitcoin, the leading cryptocurrency by market capitalization, to be “exponential gold.” “In my opinion, Bitcoin is exponential gold and an aspiring player on the store of value team,” she said.
The reason for Bitcoin’s underperformance
In his social media posts, Timmer also touched on Bitcoin’s recent underperformance.
He believes the network’s slow growth is why the leading cryptocurrency has failed to gain traction after reaching its current peak of $73,737 in March.
“In my opinion, this divergence between price and adoption could explain why Bitcoin has slowed down a bit on its path to potential new all-time highs. The pendulum will only swing so far,” Timmer said.
Timmer predicted that the leading cryptocurrency could potentially reach new all-time highs only if the network’s growth somehow accelerates again.
Overall, the growth of the Bitcoin network is driven by the cryptocurrency’s inherent scarcity, the monetary and political cycle, and investor sentiment, according to the Fidelity executive.
Bitcoin’s volatile week
On Wednesday, the price of Bitcoin suddenly pared large losses recorded earlier this week due to lower-than-expected US inflation. However, some aggressive comments made by Federal Reserve Chairman Jerome Powell put a spanner in the works for the bulls.
As of this writing, the cryptocurrency is changing hands at $66,794 on the Bitstamp exchange.
About the author
Alex Dovbnja
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the burgeoning industry, from price analysis to Blockchain disruption. Alex has authored more than 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets; he can be contacted at alex.dovbnya@u.today.