Constancy Investments’ international macro director Jurrien Timmer says that for Bitcoin (BTC) to hit recent all-time highs (ATHs) one key occasion should happen.
Timmer tells his 186,600 followers on the social media platform X that Bitcoin adoption might have to extend earlier than the crypto king can print new ATHs.
“The expansion of Bitcoin’s community has slowed in current months, whereas its worth has continued to realize. For my part, this divergence between worth and adoption might clarify why Bitcoin has slowed down a bit alongside its path to potential new all-time highs. The pendulum will solely swing to this point. For the brand new highs to proceed, the community could should speed up once more. May this be pushed by the subsequent chapter within the fiscal dominance thesis (i.e., financial subordination)?”
The analyst additionally says that he believes Bitcoin is aggressive to gold as a retailer of worth and that the expansion of Bitcoin’s worth can also be pushed by its shortage and central financial institution financial coverage.
“For my part, Bitcoin is exponential gold and an aspiring participant on the shop of worth group. My work means that the value of Bitcoin is pushed primarily by the expansion in its community, which is in flip pushed by Bitcoin’s distinctive shortage function, in addition to the financial and monetary coverage cycle, and naturally sentiment.”
The analyst believes that Bitcoin’s adoption curve stays on observe, primarily based on the expansion of non-zero addresses, however must uptick for worth to begin rising.
“The chart under reveals Bitcoin’s rising community alongside a easy energy curve. The variety of non-zero addresses has converged in direction of this energy curve, with Bitcoin’s worth oscillating round it like a pendulum. Such is Bitcoin’s distinctive collection of boom-bust cycles.”
Supply: Jurrien Timmer/X
Bitcoin is buying and selling for $66,676 at time of writing, down barely within the final 24 hours.
Generated Picture: DALLE3