Bitcoin: The “Massive Gold” According to Fidelity’s Global Macro Director
Jurrien Timmer, Director of Global Macro at Fidelity Investments, views Bitcoin, the leading cryptocurrency by market capitalization, as “massive gold.” He stated, “In my view, Bitcoin is a massive gold and an aspirational store of value player.”
The Reason Behind Bitcoin’s Weak Performance
In his social media posts, Timmer also addressed Bitcoin’s recent underperformance. He believes that the slowdown in network growth is the reason behind the leading cryptocurrency’s failure to gain significant traction after reaching its current peak of $73,737 in March. Timmer said, “From my perspective, this divergence between price and adoption can explain why Bitcoin has slowed down a bit on its way to new potential all-time highs. The pendulum will only swing so far.”
Timmer predicted that the leading cryptocurrency could reach new all-time highs only if network growth accelerates once again. Overall, Bitcoin’s network growth is driven by the cryptocurrency’s inherent scarcity, the monetary and political cycle, and investor sentiment, according to the Fidelity executive.
A Volatile Week for Bitcoin
Read more The Impact of May’s U.S. Producer Price Index (PPI) on Bitcoin and the Broader Cryptocurrency Market
On Wednesday, Bitcoin’s price suddenly trimmed the significant losses recorded earlier this week due to lower-than-expected inflation in the United States. However, some comments made by Federal Reserve Chairman Jerome Powell weighed on the bulls.
At the time of publication, the cryptocurrency is trading at $66,794 on the Bitstamp exchange.
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