Jurrien Timmer, Fidelity's Global Macro Director, has warned about the future prospects of Bitcoin, suggesting that the popular cryptocurrency may face uncertain times.
Jurrien Timmer Believes Bitcoin Has Outgrown Itself
Despite the recent interest and anticipation for a potential Bitcoin ETF, Timmer believes the digital asset may be outpacing itself given the current macroeconomic climate.
Making a comparison between BTC's growth trajectory and the internet adoption curve, Timmer emphasized the importance of real rates in determining the growth potential of cryptocurrencies.
By applying a real rate range of +2% to -2%, Timmer noted that Bitcoin appears to have reached the +2% side of the spectrum, which is in line with current real rates.
Timmer believes that unless these rates fall or the adoption curve accelerates, BTC's growth may be curtailed in the near future.
Timmer's assessment is significant because of Fidelity's interest and involvement in the cryptocurrency space, including its recent application for a BTC ETF.
It should be kept in mind that BTC's performance, like any investment, depends on various factors, and investors should be careful and conduct extensive research.
As the cryptocurrency market continues to evolve, market participants will be watching developments closely and assessing the implications of Timmer's warning on Bitcoin's future trajectory.
*Not investment advice.