Fidelity's Director of Global Macro Sees Bitcoin as 'Exponential Gold' on Store of Value Team

Fidelity Investments’ Director of Global Macro sees bitcoin as “exponential gold” and “an aspiring player on the store of value team.” According to his analysis, bitcoin’s price is “driven primarily by the growth in its network, which is in turn driven by bitcoin’s unique scarcity feature, as well as the monetary and fiscal policy cycle, and of course sentiment.”

‘Bitcoin Is Exponential Gold’

Fidelity Investments’ Director of Global Macro, Jurrien Timmer, shared his perspective on bitcoin in several posts on social media platform X on Thursday. Timmer specializes in global macro strategy and active asset allocation within Fidelity’s Global Asset Allocation Division. He wrote:

In my view, bitcoin is exponential gold and an aspiring player on the store of value team.

“My work suggests that the price of bitcoin is driven primarily by the growth in its network, which is in turn driven by bitcoin’s unique scarcity feature, as well as the monetary and fiscal policy cycle, and of course sentiment,” he explained.

He provided a chart showing “Bitcoin’s growing network along a simple power curve,” he detailed, adding: “The number of non-zero addresses has converged towards this power curve, with Bitcoin’s price oscillating around it like a pendulum. Such is Bitcoin’s unique series of boom-bust cycles.”

Timmer pointed out: “The growth of Bitcoin’s network has slowed in recent months, while its price has continued to gain.” He opined:

In my view, this divergence between price and adoption could explain why bitcoin has slowed down a bit along its path to potential new all-time highs. The pendulum will only swing so far.

“For the new highs to continue, the network may have to accelerate again. Could this be driven by the next chapter in the fiscal dominance thesis (i.e., monetary subordination)?” the Fidelity director of Global Macro pondered.

What do you think about the statements by Fidelity’s director of Global Macro, Jurrien Timmer? Let us know in the comments section below. #Write2Earn