Timmer believes that short-term speculators have not driven the rise in the price of the cryptocurrency. The analyst recommends that investors have a diversified portfolio that includes some BTC.
The director of global macroeconomics at mutual fund company Fidelity Investments, Jurrien Timmer, recently spoke about Bitcoin. He expressed that he believes that the rally that its price is experiencing will continue for two years. He bases his analysis on the supply and demand model to predict that the cryptocurrency will hit USD 100,000 in 2023.
Various media outlets have consulted Timmer about his perspective on the market and his opinion on the Bitcoin rally. The price of the first cryptocurrency on the market recently exceeded USD 60,000 after six months and is approaching its all-time high.
Timmer has commented on the more than 30% rally that the value of Bitcoin has experienced so far in October. He believes that that increase is due to the growth of long-term storage of the crypto asset.
According to Timmer, it is not short-term speculators who have fueled this Bitcoin bull run. For that reason, he is confident that it is a sustainable measure and not a bubble that is about to burst.
Timmer Believes that the Price of Bitcoin Will Continue to Grow
The director of Fidelity firmly believes that enough fundamentals indicate that the trajectory of Bitcoin has changed and its price will not stagnate. Therefore, he believes there are many reasons for investors to include a bit of Bitcoin in a diversified portfolio.
The executive considers that Bitcoin is as efficient as the 60/40 rule known to be the favorite of many. That consists of 60% stock and 40% fixed income, where the former provides growth potential and the latter provides security.
Jurrien Timmer explained that a 1% allocation in BTC under the 60/40 strategy only adds about one percentage point of volatility per year. He says that if the investor accumulates Bitcoin long enough, his money will grow like nothing else. He suggests having a diversified portfolio for when prices move back as there may be a temptation to run away.
Optimism about the Increase in the Price of Bitcoin Grows Among Analysts
Timmer is not the only analyst who has been confident about the price of Bitcoin. Previously, the stock-to-flow (S2F) valuation model has allowed making optimistic predictions of future movements in the value of the cryptocurrency.
The creator of that model, Plan B, has said that the price of Bitcoin could reach or exceed USD 100,000 by the end of 2021. He predicted in early October that the value of the cryptocurrency by the end of the month would be USD 63,000.
According to the S2F model, Bitcoin is a store of value like gold or silver, as it maintains its long-term value due to its scarcity. Under that principle, Plan B correlates the stock (amount of assets available) with the flow (amount of Bitcoin mined annually). In that way, he makes projections of where the price of the pioneering cryptocurrency could go.
By Alexander Salazar
