Could Bitcoin Keep Up With The Parabolic Golds Rally Of The 1970s? Fidelity macro strategist compares BTC to precious metal

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Jurien Timmer, global macro director of financial giant Fidelity, says Bitcoin could follow in gold’s footsteps in the 1970s.

Timmer tells his 61,400 Twitter followers that Bitcoin is a “budding asset class,” full of potential, just like gold was 50 years ago. Timmer explains that during the 1970s, the yellow metal went through a turbulent phase.

“Even though it was a known commodity, gold was extremely volatile on its way to a 20x return and suffered significant declines fairly regularly.”

Looking at Bitcoin, Timmer says the major cryptocurrency had more advantages than gold in the 1970s due to the provable scarcity of BTC and network effects. However, Fidelity’s global macro strategist points out that Bitcoin’s upside potential comes with larger losses.

Bitcoin, on the other hand, is a newcomer, with scarcity and network effects. So it makes sense to me that bitcoin’s advantage is greater than that of gold, as are its losses. This is the definition of price discovery. / 3

– Jurrien Timmer (@TimmerFidelity) July 29, 2021

Timmer traces the price evolution of Bitcoin over the past two years and compares it to the rise in the value of gold five decades ago.

“Below I show Bitcoin from its 2019 low against gold in the 70s. Price analogues are very subjective, but it is clear that the discovery of the price of gold was very volatile, much like Bitcoin today. By this measure, the current 50% drop in Bitcoins could be seen as an obstacle in the way. “

Source: Jurien Timmer / Twitter

The Fidelity executive also unveils his BTC supply and demand models, which he says suggests the current Bitcoin boom cycle has more gas in the reservoir.

“At the risk of choosing, the timing in the chart above matches my supply / demand patterns below. Both charts suggest that Bitcoin is not done with its current bullish phase. “

Source: Jurien Timmer / Twitter Don’t Miss a Beat Subscribe to receive crypto email alerts straight to your inbox Follow us on Twitter, Facebook and Telegram Surf The Daily Hodl Mix Check the latest news Warning: opinions expressed at Daily Hodl are not investment advice. Investors should do their due diligence before making high risk investments in Bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and that any loss you may suffer is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in Affiliate Marketing.

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