U.Today - Fidelity's Director of Global Macro, Jurrien Timmer, a stark warning about the future trajectory of Bitcoin. The cryptocurrency, which has become the digital equivalent of a "store of value," could be on shaky ground, according to Timmer.
Despite a recent surge in interest, potentially driven by expectations of a Bitcoin ETF, Timmer cautioned that the digital asset might be outpacing itself given the current macroeconomic climate.
Timmer drew a parallel between Bitcoin's potential growth path and the adoption curve of the internet. Applying a range of real rates from +2% to -2%, he noted that Bitcoin appears to have reached the +2% side of the spectrum, aligning with current real rates.
He suggested that unless these rates start to decline or the adoption curve speeds up, the cryptocurrency could face restricted growth in the near future.
At the time of writing, Bitcoin's value sits at $30,557.26, with a market cap of approximately $593.63 billion, according to . The digital currency has experienced a slight increase of 0.9%, with its 24-hour trading volume reaching over $15 billion.
Timmer's assessment is significant given Fidelity's interest and involvement in the cryptocurrency space, including its recent ETF filing. Notably, the firm has filed for a Bitcoin ETF in the U.S., even as the SEC continues to delay decisions on approving such funds. Therefore, his bearish tone may raise eyebrows in the cryptocurrency community. As with any investment, the performance of Bitcoin continues to be dependent on various factors, and investors should exercise caution and due diligence.