Bitcoin’s Path to New Highs: Adoption Key, Says Analyst

According to Jurrien Timmer, global macro director at Fidelity Investments, Bitcoin’s adoption needs to increase for it to reach new all-time highs (ATHs).

Adoption and Price Divergence

Timmer notes that Bitcoin’s network growth has slowed while its price has continued to rise. This divergence suggests that adoption may be lagging behind price appreciation.

Bitcoin as a Store of Value

Timmer believes Bitcoin is a strong competitor to gold as a store of value. Its scarcity and central bank monetary policy are also driving its price growth.

Adoption Curve on Track

Timmer sees Bitcoin’s adoption curve as on track, based on the growth of non-zero addresses. However, he believes adoption needs to accelerate for the price to continue rising.

Bitcoin’s Boom-Bust Cycles

Timmer describes Bitcoin’s price movements as oscillating around a power curve, with the number of non-zero addresses following a similar pattern. This reflects Bitcoin’s unique boom-bust cycles.

Current Market Situation

At the time of writing, Bitcoin is trading at $66,676, slightly down in the last 24 hours.