Jurrien Timmer – Fidelity’s Director of Global Macro – believes bitcoin will trade at $100,000 by 2023. Regarding its correlation with gold, he said both assets are “different players in the same team.”
The Road to $100K
Bitcoin’s price has been, and most probably will remain, one of the hottest topics in the cryptocurrency space. Future predictions are also frequently discussed, and the end of 2021 is the next time target, which many proponents and analysts see bitcoin tapping $100,000.
Such is the case with Bloomberg’s Senior Commodity Strategist – Mike McGlone. Last month, the expert took into account bitcoin’s growing adoption and declining active supply to predict that it will land at $100,000 by the end of 2021.
Jurrien Timmer – Fidelity’s Director of Global Macro – also believes BTC could go into a six-digit territory, but his timeframe is larger. In a recent interview with CNBC, he indicated that BTC’s USD value will have five zeros by 2023:
“I have a supply model and a demand model and the next and last time that those two models intersect is at around $100K in a couple of years.”
Timmer also touched upon another popular topic – the correlation between the primary cryptocurrency and gold. He said the two assets are not competitors but “two different players in the same team.” However, he would actually prefer to compare the cryptocurrency with the multinational tech giant – Apple:
“I’ve got another study where I compare it actually to Apple’s network, its valuation, and its size.”
BTC And The Dollar
On another note, Timmer opined that bitcoin will remain connected “in some way” to the American dollar. He added that, as of the moment, the leading digital asset is “kind of clunky, slow, and not very stable.” As such, it does not threaten the dominance of the US national currency:
“I really don’t think bitcoin threatens the dollar or the dollar’s reserve status. I don’t think the dollar’s hegemony as a reserve currency is at risk at all.”
Fidelity’s Director also mentioned the two assets last month when airing his thoughts about El Salvador’s bitcoin adoption. He called the country’s decision “new and interesting development,” but believes the significance of it is “a little bit overplayed:”
“It’s not like El Salvador has dropped the US dollar as its peg – it’s not like it switched from dollars as its currency peg to Bitcoin. It still has the dollar, and people can decide to be paid in dollars. So, this is a voluntary thing essentially.”