Bitcoin market conditions do not resemble an economic bubble — by 2023, the asset’s price could rise to $100,000. This was stated by Jurrien Timmer, head of macroeconomic research at Fidelity Investments’ asset-management arm, to CNBC.
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In the last two weeks, the price of the first cryptocurrency has risen by 40%, according to CoinGecko. On 14 October, quotes rose above $58,000. At the time of writing, digital gold is trading near $57,900.
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According to Timmer, the local Bitcoin rally is driven by organic spot demand and is not tied to speculation, so it could continue in the future.
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\”This is not a short-term impulse of speculators, so I am somewhat confident that we are dealing with a fairly sustainable move, not a bubble that is about to burst. The trajectory is upward, and there is no evidence that a handful of speculators drove the price to $57,000,\” he said.
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Timmer also noted that, despite all differences, Bitcoin and gold complement each other. The executive acknowledged Bitcoin’s supremacy, but doubted that it would be able to displace the precious metal.
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\”The supply of Bitcoin is capped, and gold does not have the same network effects as a cryptocurrency, so it is quite logical that the digital asset will surpass it. Bitcoin and gold are two players on the same team,\” he said.
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In Timmer’s view, Bitcoin does not threaten the U.S. dollar, or its status as a reserve currency. He argued that the development of cryptocurrencies, on the contrary, helps ensure that the U.S. dollar can maintain its position.
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In conclusion, a Fidelity representative said that Bitcoin’s value proposition lies in its use as a medium of exchange. He stressed that, to a large extent, this capability depends on second-layer solutions such as Lightning Network.
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Earlier in September, Fidelity Investments representatives, at a meeting with officials from SEC presented arguments in favor of approving a Bitcoin ETF.
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