Jurrien Timmer – the director of Fidelity – believes that the price of bitcoin could reach $100,000 by the year 2023.
Timmer: The Price of BTC Is On the Verge of Exploding
At first glance, this prediction seems a little farfetched, especially when one considers the major hurdles bitcoin has been through over the past few months. Following news that Elon Musk was rescinding his decision to allow customers to pay for Tesla vehicles with bitcoin and that China was expelling all its crypto miners, the price of the coin fell dramatically. For a short time, the currency was trading below the $30,000 mark – a more than 50 percent drop from where it stood in mid-April ($64,000).
At the same time, the currency has gone through something of a rally over the past few weeks, jumping from the high $40,000 range to just under $57,000. This is a gain of nearly $10,000 in a relatively short period, and we are once again being given proof of bitcoin’s growing resilience. There is nothing the coin isn’t capable of; we’ve seen this firsthand, and no matter how much it seems to drop, bitcoin has proven able to recuperate in virtually no time at all.
So, when one considers the fact that 2023 is still two years away and bitcoin is well above $50,000 at the time of writing, $100,000 by that year doesn’t appear too out of reach. In an interview, Timmer said:
This rally has come with little fanfare and doesn’t seem driven by momentum chasers. The percentage of coins held by short-term ‘tourists’ is down to just 15 percent. This tells me there could be room to run if momentum chasers pile in.
He further mentioned that many times in the past, bitcoin’s price bottomed out only when the number of short-term bitcoin holders fell to about 30 percent. He says that things have ultimately improved since then, and he is noticing several correlations between the bitcoin price and the gold price, and further suggests that the asset is simply following in the precious metal’s footsteps.
He is convinced that bitcoin will be able to hold its ground and that there is no bubble to be had, like so many other analysts are suggesting. Timmer explains:
This is a pretty sustainable move, and it’s not a bubble that’s about to burst.
It Won’t Get in the Dollar’s Way
Lastly, he is certain that bitcoin’s growth is not going to affect the well-being of the U.S. dollar, like so many regulators in Congress seem to believe. He commented:
I really don’t think bitcoin threatens the dollar or the dollar’s reserve status. Bitcoin’s value proposition is that ultimately it goes from just being a store of value to also being a medium of exchange, and that depends on second layer [developments] that are being built right now.