After hitting an all-time high of $67,000 earlier this week, Bitcoin has retraced nearly 10% and is trading close to $61,000 levels as of press time. While Bitcoin retracements are not new, markets analysts continue to believe in the Bitcoin story.
Fidelity’s director of Global Macros, Jurrien Timmer, predicts that the BTC price will continue to inch higher based on the demand and supply models.
Bitcoin made a new all-time high of $66,000 on Wednesday. The chart below shows that both my supply and demand models continue to point to higher prices. (THREAD) pic.twitter.com/6q1mwpbsCh
— Jurrien Timmer (@TimmerFidelity) October 22, 2021
Speaking to CNBC earlier this week, Timmer said that the BTC price could reach $100K by 2023. Of course, Timmer doesn’t expect the BTC price to go straight up to $100K and he adds that there could be some pullbacks in the way. Thus, by further comparing it to the Gold price rally of the 1970s, he adds:
With the analog of gold during the 1970s in mind, it wouldn’t surprise me to see a surge, followed by a correction. That would be very similar to bitcoin’s previous boom/bust cycles and it would be the most non-linear thing it can do.
During his CNBC interview earlier this week, Timmer said: “Bitcoin is a more convex version of gold. It has an ever scarcer supply and gold does not have the network dynamics that bitcoin does, so it makes sense that bitcoin would outperform gold. Bitcoin and gold are two different players on the same team.”
Not A Speculation-Driven Rally
Commenting on the recent BTC price really, Timmer said that this is not just a speculation-driven but rather a more sustainable one. He added:
“This has not been a momentum-fueled run by short-term speculators, so that gives me some confidence that this actually is a pretty sustainable move and is not a bubble that is about to burst”.
Fidelity has been engaged with creating an infrastructure around Bitcoin. Furthermore, it has also held active discussions with the regulators in creating a proper regulatory framework around Bitcoin and its derivative products. But Timmer is not alone to predict a mega bull run for BTC going ahead. On Friday, October 22, crypto analyst Lark Davis said that the next six months will be a crazy ride for Bitcoin.
Here’s a guide on how NOT to screw it up 👇
— Lark Davis (@TheCryptoLark) October 22, 2021