Jurrien Timmer, head of macroeconomic research at asset manager Fidelity Investments, has told CNBC the situation in the crypto market is not like an economic bubble.
According to him, by 2023, the price of Bitcoin could soar to $100,000.
Over the past two weeks, the price of the reference cryptocurrency has registered a 40% increase, according to CoinGecko. Last October 14, the price of Bitcoin surpassed $58,000, while it currently remains slightly below this level.
The local Bitcoin rally is driven by organic spot demand and not speculation, so it could continue in the future, Timmer has said:
“This is not a short-term speculator drive, so I am somewhat confident that this is a fairly steady move, not a bubble that is about to burst. The trajectory of the move is headed up, and so far there is no evidence that a handful of speculators have driven the price to $57,000.”
Timmer has also stressed that despite all the differences, Bitcoin and gold complement each other. He has recognized the superiority of the crypto, but doubts that it can replace the precious metal:
“The issuance of Bitcoin is limited and gold does not have the same network dynamics as the crypto, so it is logical that the digital asset will outperform it. Bitcoin and gold are two players on the same team.”
According to Timmer, Bitcoin does not threaten the US dollar and, in particular, its reserve currency status. He believes the development of cryptocurrencies, on the contrary, ensures the US currency will be able to maintain its position.