Fidelity sees a bright future for the crypto Bitcoin: ‘it is exponential gold’

Jurrien Timmer, director of global macro at Fidelity, recently stated that Bitcoin represents an aspiring store of value, comparing it to an “exponential gold”. 

According to Timmer, Bitcoin is emerging as a key player in the field of store of value, offering potential for growth and stability in the long term. 

This vision highlights the growing recognition of Bitcoin as a valid alternative to traditional stores of value like gold, supported by one of the main global financial institutions. Let’s see all the details below. 

Bitcoin is exponential gold, according to the director of global macro at Fidelity

As anticipated, Jurrien Timmer, director of global macro at Fidelity, recently released a noteworthy statement on Bitcoin, describing it as “exponential gold” and an emerging player in the “store of value” team.

The comments by Timmer, shared through a series of posts, elaborate on the evolving role of Bitcoin in the financial ecosystem. Thus comparing its growth trajectory to that of revolutionary technologies like the Internet and mobile phones.

Timmer highlighted Bitcoin’s unique position in the market, emphasizing its scarcity and the growing acceptance as a digital asset. These factors contribute to its potential as a long-term store of value, similar to gold. 

In his posts, he suggested that the rate of adoption and growth of the network are critical elements for the evaluation of Bitcoin. Even though Bitcoin is still in its early stages compared to traditional assets, its adoption is accelerating at an exponential rate. 

Supporting the thesis that it could become a significant store of value in the future. In particular, Timmer stated the following: 

“The charts show the growing network of Bitcoin along a simple power curve. The number of non-zero addresses is converging towards this power curve, with the price of Bitcoin oscillating around it like a pendulum. This is the only series of Bitcoin boom-bust cycles.”

The approval of Timmer aligns with a broader trend among institutional investors who recognize the potential of Bitcoin. His point of view reinforces the growing legitimacy of Bitcoin within the financial sector, suggesting that it could play a vital role in future investment strategies.

Growth slowing down, but the price continues to rise 

Timmer concluded his posts by noting that the growth of the Bitcoin network has slowed in recent months, while its price has continued to rise: 

“In my opinion, this divergence between price and adoption could explain why Bitcoin has slowed down a bit along its path towards potential new all-time highs. The pendulum will only swing to a certain point. For new highs to continue, the network might need to accelerate again.”

This vision reflects the idea that, despite short-term fluctuations, the future of Bitcoin as a store of value remains promising, with the potential to grow exponentially as its adoption continues to spread.

The role of short-term investors in the direction of the market

On-chain data shows that Bitcoin is approaching the “realized price” of short-term holders, a historically significant new test for BTC. 

Julio Moreno, Head of Research at CryptoQuant, recently discussed on X how BTC is close to this critical metric, which has influenced market behavior in the past.

The “prezzo realizzato” is an on-chain indicator that tracks the average price at which investors have purchased their coins. When the spot price of the cryptocurrency exceeds this value, the average holder is in profit. 

On the contrary, if the spot price is lower, investors are at a loss. Currently, the price of Bitcoin is close to the price realized by short-term holders (STH), those who have purchased their coins in the last 155 days.

The chart from CryptoQuant shows that Bitcoin is on the verge of retesting the realized price of STH. This indicator has historically represented a turning point for the asset, with different outcomes in the past. 

During two of the previous retests, Bitcoin found support and bounced upwards, continuing its bullish momentum. In three other cases, however, BTC did not hold the level and experienced a drop between 8% and 12%.

If Bitcoin continues on its current bearish trajectory, a new test of the realized price of STHs could be imminent. Moreno highlights that past interactions between the spot price and this level have often anticipated significant movements in the market. 

If BTC fails to maintain the level, the price could drop to around $60,000.

In conclusion, with another possible retest of the realized price of the STH coming, the behavior of Bitcoin in the next few days will be crucial.