Jurrien Timmer, global macro director at financial giant Fidelity, says Bitcoin (BTC) looks primed to resume its uptrend as the leading cryptocurrency threatens to rally above $50,000.
In a new tweetstorm, Timmer tells his 62,800 followers that BTC is “no longer a sideshow” as the king crypto’s market cap inches closer to previous highs.
[adinserter block="1"]“With the latest rally, Bitcoin’s market cap is closing in on the old highs. If we add in the rest of the crypto space, we have reclaimed a market cap of $2 trillion. This is no longer a sideshow, folks.”
Timmer is also evaluating Bitcoin’s performance in the last two years and says that it closely resembles gold’s price action in the 1970s.
“Based on my (highly subjective) gold analog from the 1970s, Bitcoin looks ready to resume its up-trend.”
The Fidelity executive says he’s impressed with Bitcoin’s recovery and notes that he’s seeing signals indicating that the leading crypto asset has already placed a bottom.
“I’m impressed how resilient Bitcoin and the crypto space in general have been during this 55% correction. The speculators (tourists) got crushed as they usually do during drawdowns and now make up only 17% of the market. That level is consistent with past bottoms.”
Timmer also takes a look at the fundamentals of Bitcoin to support his analysis. According to the macro strategist, the number of addresses in the BTC network is trending with the asset’s value.
“In fact, Bitcoin’s fundamentals (its network) are steadily improving. At the peak, there were 34.3 million addresses (with at least $1). That number fell to 31.8 million at the low and has now climbed back up to 33.5 million.”
Timmer says that “HODLers,” or entities that have held BTC for over 10 years, now control a significant portion of Bitcoin’s supply.
“Meanwhile, the HODLers continue to accumulate, and now make up 12% of the market.”
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