Bitcoin To Resume Uptrend As Fundamentals Improve, Says Fidelitys Global Macro Director

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Bitcoin is apparently poised to resume its bullish trend as cryptocurrency fundamentals continue to improve and this is no longer a side show, according to Fidelitys Global Macro Director Jurrien Timmer.

In a tweetstorm, Timmer noted that in a declining economy, bitcoin now appears to be successfully breaking out of a box it was stuck in, shortly after the latest crypto market rally saw the space of the cryptocurrency as a whole is back to the $ 2 trillion mark.

Jurrien, who called bitcoin the digital analogue of gold and argued that the price action of cryptocurrencies is comparable to that of gold in the 1970s as an asset class that appears maturing, much like gold back then, also pointed to improving cryptocurrency fundamentals.

In fact, the fundamentals of bitcoin (its network) are improving steadily. At the top, there were 34.3 million addresses (with at least $ 1). That number fell to an all-time low of 31.8 million and has now risen to 33.5 million. / 5 pic.twitter.com/i0vkLw95lx

Jurrien Timmer (@TimmerFidelity) August 20, 2021

Timmer added that bitcoin’s recent correction from an all-time high of nearly $ 64,000 to test the $ 30,000 mark before recovering saw it fall at the intersection of its demand model, which is basically his take on the popular stock-to-flow model.

In his words, this has given the cryptocurrency a good base from which to consolidate, the next time the patterns cross at around $ 110,000. The analyst added that he was impressed [with] how resilient bitcoin and the crypto space, in general, have been during this 55% correction. Speculators, he said, were crushed on the pullback and now represent 17% of the market, a level consistent with past lows.

Bitcoin hash rate is rising from the abyss (following China’s mining ban), although it remains well below the peak. Higher prices will likely correct this, as mining keeps pace with demand. / 7 pic.twitter.com/A3VKtYznSL

Jurrien Timmer (@TimmerFidelity) August 20, 2021

Meanwhile, Timmer added, HODLers continue to rack up more BTC, to the point that they now represent 12% of the cryptocurrency market. As noted, the data showed that bitcoin whales continued to buy BTC even though the price fell below $ 30,000.

Earlier this month, Whales moved more than $ 222 million in stablecoins to centralized cryptocurrency exchange platforms in typical moves when whales and / or institutional entities wait in the shadows for capitalize on local declines.

DISCLAIMER

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading crypto-assets carries a risk of financial loss.

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