Bitcoin is seemingly ready to resume its uptrend as the cryptocurrency’s fundamentals keep on improving and it’s “no longer a sideshow,” according to Fidelity’s Director of Global Macro Jurrien Timmer.
In a tweetstorm, Timmer noted that in an economy with waning momentum, bitcoin is now seemingly managing to get out of a box it was stuck in, shortly after the latest crypto market rally saw the cryptocurrency space as a whole retake the $2 trillion mark.
Jurrien, who has called bitcoin a “digital analog of gold” and has argued the cryptocurrency’s price action is comparable to that of gold during the 1970s as an asset class “that looks to be coming of age,” much like gold did at the time, also pointed out the cryptocurrency’s fundamentals were improving.
Timmer added that bitcoin’s recent correction from its near $64,000 all-time high to test the $30,000 mark before recovering saw it drop to the “intersection” of his demand model, which is essentially his take on the popular stock-to-flow model.
Per his words, it gave the cryptocurrency a “good base from which to consolidate,” with the next time the models intersect being at around $110,000. The analyst added he is “impressed [with] how resilient bitcoin and the crypto space, in general, have been during this 55% correction.” The speculators he said, were “crushed” during the drawdown and now make up 17% of the market, a level “consistent with past bottoms.”
Meanwhile, Timmer added, HODLers keep on accumulating more BTC, to the point they now make up 12% of the cryptocurrency market. As reported, data showed that bitcoin whales kept on buying BTC even as the price dropped below $30,000.
Earlier this month, whales have moved more than $222 million worth of stablecoins into centralized cryptocurrency trading platforms in movements typical when “whales and/or institutional entities” wait “in the shadows to capitalize on local dips.”
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