Bitcoin Price Could Sprint To New All-Time Peak But Only If This Happens — Fidelity Analyst Reveals

5 months ago 15

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One analyst says only one main indicator is necessary to predict whether Bitcoin can blast past its all-time high of $73,700 later in 2024, and it all rests on the growth of the premier crypto’s network.

Jurrien Timmer of Fidelity Investments said on X that Bitcoin’s widespread adoption must first increase before the BTC price can see a break upward to new record highs.

Bitcoin Is “Exponential Gold”

Fidelity’s Director of Global Macro, Jurrien Timmer, told his 186.8k followers on the X (aka Twitter) platform that he believes Bitcoin is “exponential gold”.

“In my view, bitcoin is exponential gold and an aspiring player on the store of value team,” he postulated.

Timmer further touched on Bitcoin’s lackluster performance in recent months. According to him, slowing network growth is the main reason why the world’s largest and oldest crypto has struggled to get past the $72,000 mark after setting its ever newer all-time high of $73,737 in March. The key driver of the giant Bitcoin rally at the time was the U.S. Securities and Exchange Commission approving spot BTC exchange-traded funds, which enabled traditional investors to gain more direct exposure to the cryptocurrency without having to buy and hold it.

“In my view, this divergence between price and adoption could explain why Bitcoin has slowed down a bit along its path to potential new all-time highs. The pendulum will only swing so far,” the Fidelity executive opined.

Timmer believes that the BTC price is spurred mostly by the growth of its network, the crypto’s inherent scarcity, monetary and fiscal policy cycle, and investor sentiment. He noted that Bitcoin’s adoption curve is still on course based on the growth of non-zero addresses:

“The chart below shows Bitcoin’s growing network along a simple power curve. The number of non-zero addresses has converged towards this power curve, with Bitcoin’s price oscillating around it like a pendulum. Such is Bitcoin’s unique series of boom-bust cycles.”