Fidelity Director: Bitcoin Market Cap Could Reach $6 Trillion, a Quarter of 'Monetary Gold' Market
Fidelity Director: Bitcoin Market Cap May maybe Reach $6 Trillion, a Quarter of ‘Monetary Gold’ Market
Fidelity’s Director of International Macro, Jurrien Timmer, has suggested that the Bitcoin (BTC) market cap has the aptitude to reach a quarter of the “monetary gold” market, hitting a dauntless $6 trillion.
Jurrien Timmer’s forecast is in accordance to the conclusion that Bitcoin will solidify its grunt as digital gold and a real store of value.
Timmer’s prognosis, shared in a Thursday post on X, attracts a parallel between the proportion of gold held for monetary purposes, estimated at 40% of the arena’s above-ground gold, and the aptitude market value of Bitcoin.
Following up on my old threads, here are some thoughts on Bitcoin’s probably market share vs gold: In the chart below I present the price of “monetary gold,” which is that share of gold held by central banks and deepest investors as a monetary asset (as in opposition to jewellery or… pic.twitter.com/ZFJ3zHE4ka
— Jurrien Timmer (@TimmerFidelity) February 22, 2024
Bitcoin’s Market Cap May maybe Develop to $6 Trillion: Timmer
Jurrien Timmer valuable that the monetary gold, with the exception of jewellery or industrial makes use of, is at show valued at round $6 trillion, with central banks and deepest investors conserving this indispensable share.
The Fidelity Director argued that Bitcoin may seize a considerable slash of this market, leveraging its present valuation of $1 trillion as a basis for further tell.
“I estimate that Bitcoin will at final seize round a quarter of the monetary gold market,” he wrote.
“At 40%, monetary gold is at show price round $6 trillion, whereas Bitcoin is price $1 trillion.”
To assess the credibility of Timmer’s forecast, it is required to take into tale the inherent characteristics of Bitcoin that align it with gold’s monetary role.
These comprise the shortage which capacity that of its small supply and its rising acceptance as a hedge in opposition to inflation and currency devaluation.
Furthermore, Bitcoin’s digital nature and decentralized framework grunt it as a recent various to gold, severely attention-grabbing to tech-savvy folk and a younger demographic of investors.
Meanwhile, some customers claimed that Timmer’s prognosis is a correct unhealthy case mannequin for valuing Bitcoin but the main cryptocurrency has the aptitude to grow even more when it comes to market value.
“Save a matter to for gold is globally on nation grunt level, however Bitcoin quiz is rising from ‘bottom up’, folk had been first to adopt is now not any longer nations,” one person wrote.
This prognosis is completely centered on the provision dynamics, but I even discover posted a spread of tell the use of quiz factors (S-curves, etc).
— Jurrien Timmer (@TimmerFidelity) February 22, 2024
Analysts Live Bullish on Bitcoin
As reported, a recent document from Matrixport predicts that Bitcoin may reach a target of $63,000 by March 2024.
In its document, Matrixport known some key catalysts that will maybe propel Bitcoin to recent heights, at the side of essentially the most up-to-date approval of plight Bitcoin ETFs, the upcoming halving tournament, and curiosity rate cuts.
Bitwise Chief Funding Officer Matt Hougan also expects Bitcoin to fly beyond $80,000 this 365 days which capacity that of essentially the most up-to-date success of plight ETFs.
In a most up-to-date interview, Hougan highlighted the sustained quiz for ETFs, which has exceeded his expectations.
He mentioned that this wave of curiosity from former finance, connected to Bitcoin’s IPO within the US market, will lead to further institutional investment and power up costs.
Likewise, analysts at investment company Bernstein ask Bitcoin to resume its upward trajectory, surpassing its old all-time excessive of $69,000 and presumably reaching $70,000 this 365 days.
The analysts discover expressed self belief within the cryptocurrency’s risk-reward profile, pointing out that no indispensable challenges are anticipated to hinder its ascent.
Source : cryptonews.com
