While the leading cryptocurrency Bitcoin experienced sharp declines after its ATH in March, investors have their eyes on the new ATH.
At this point, Fidelity Investments global macro director Jurrien Timmer said that a significant event must occur for Bitcoin to reach the new ATH.
Sharing from account X, Jurrien Timmer stated that Bitcoin adoption must increase in order for BTC to reach new ATHs.
At this point, Fidelity manager stated that the network growth in Bitcoin has slowed down, but the price continues to remain high compared to this growth, drawing attention to this discrepancy in BTC and said:
“While the growth of the Bitcoin network has slowed in recent months, its price has continued to rise.
This mismatch between price and adoption in BTC is preventing new ATH from coming. BTC network growth must accelerate for the new ATH to be bullish.”
Bitcoin (BTC) is Superior to Gold!
The Fidelity executive also stated that Bitcoin can compete with gold as a store of value and said that the increase in Bitcoin price is due to the scarcity of BTC and the monetary policy of the FED.
“In my view, Bitcoin is exponential gold and an asset that is in increasing demand as a store of value.
“My study shows that Bitcoin's price is driven primarily by growth in its network, which in turn is driven by Bitcoin's unique scarcity characteristic, as well as the monetary and fiscal policy cycle and, of course, sentiment.”
Jurrien Timmer recently argued that the increase in the debt of the United States, the world's largest economy, and the decline in the GDP rate may lead people to invest in assets such as Bitcoin, saying, “This situation may accelerate the re-growth of the Bitcoin network.” said.
*This is not investment advice.