Jurrien Timmerdirector of global macro at Fidelity, recently said that Bitcoin represents an aspiring store of value, likening it to “exponential gold.”
According to Timmer, Bitcoin is emerging as a key player in the store of value space, offering long-term growth and stability potential.
This vision underlines the growing recognition of Bitcoin as a viable alternative to traditional stores of value such as gold, backed by a leading global financial institution. Let’s see all the details below.
Bitcoin is exponential gold, according to Fidelity’s director of global macro
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.
Timmer’s comments, shared across a series of posts, elaborate on Bitcoin’s evolving role in the financial ecosystem. So comparing his growth trajectory to that of revolutionary technologies such as the Internet and mobile phones.
Timmer highlighted Bitcoin’s unique position in the market, highlighting its scarcity and 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.
Thus supporting the thesis that it could become a significant store of value in the future. Specifically, Timmer stated the following:
“The graphs show Bitcoin’s growing network along a simple power curve. The number of non-zero addresses has converged towards this power curve, with the price of Bitcoin swinging around it like a pendulum. This is Bitcoin’s only series of boom-bust cycles.”
Timmer’s endorsement aligns with a broader trend among institutional investors recognizing Bitcoin’s potential. His view reinforces Bitcoin’s growing legitimacy within the financial sector, suggesting it could play a role vital role in future investment strategies.
Growth slows, but prices continue 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 on its path to potential new all-time highs. The pendulum will only swing to a certain point. For new highs to continue, the grid may have to accelerate again.”
This view reflects the idea that, despite short-term fluctuations, Bitcoin’s future 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 market direction
On-chain data shows Bitcoin is approaching the “realized price” of short-term holders, a historically significant new test for BTC.
Julio MorenoHead of Research at CryptoQuant, recently discussed on X how BTC sits close to this critical metric, which has influenced market behavior in the past.
“Realized price” is an on-chain indicator that tracks the average price at which investors purchased their coins. When the spot price of the cryptocurrency exceeds this value, the average holder is in profit.
Conversely, 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 graph of CryptoQuant shows that Bitcoin is on the verge of retesting the realized price of STHs. 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 higher, continuing its bullish momentum. In three other cases, however, BTC did not sustain the level and suffered a drop of between8% and 12%.
If Bitcoin continues on its current downward trajectory, a retest of the realized price of STHs may be imminent. Moreno points out 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.
Ultimately, with another possible STH realized price retest on the way, Bitcoin’s behavior in the coming days will be crucial.
