- Bitcoin nonetheless has extra upside left, with Constancy director Jurrien Timmer anticipating a surge to $100,000 by 2023.
- Timmer believes the latest rally in bitcoin can be additional fueled by momentum merchants.
- Bitcoin’s 31% October rally is “sustainable” and is “not a bubble that is about to burst,” Timmer stated.
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The continuing rally in bitcoin can proceed to file heights over the following two years, in accordance with Constancy director of International/Macro Jurrien Timmer.
Primarily based on his proprietary supply-and-demand mannequin, Timmer sees bitcoin reaching $100,000 by 2023 as momentum merchants start to purchase into the latest rally.
“This rally has include little fanfare and does not appear pushed by momentum chasers. The share of cash held by short-term ‘vacationers’ is down to only 15%. This tells me there could possibly be room to run if momentum chasers pile in,” Timmer stated.
Most value bottoms in bitcoin have occurred when cash held by short-term “vacationers” was nearer to 30%, he added.
Bitcoin rose 2% to $56,917 on Tuesday and is up 31% to date in October, with the favored cryptocurrency reclaiming a number of key resistance ranges.
Video: What Occurs if Bitcoin Crosses $50,000? (QuickTake)
However Timmer does not see bitcoin’s latest transfer as “extreme,” based mostly on the relative value motion between bitcoin and gold. “That is truly is a fairly sustainable transfer, and it isn’t a bubble that is about to burst,” he stated an interview with CNBC on Wednesday.
If bitcoin does hit $100,000 value, many imagine the cryptocurrency might change into a risk to the US greenback and its standing because the reserve forex of the world. However Timmer says not a lot.
“I actually do not assume bitcoin threatens the greenback or the greenback’s reserve standing. Bitcoin’s worth proposition is that finally it goes from simply being a retailer of worth to additionally being a medium of alternate, and that is dependent upon second layer [developments] which might be being constructed proper now,” Timmer stated.
The truth is, Timmer believes bitcoin’s rising attain might strengthen the US greenback’s standing because the reserve forex used globally.
“Perhaps [bitcoin] truly additional ensures that the greenback will preserve its reserve standing as a result of swiftly forex goes to be accessible in farther flung reaches of the world, by means of bitcoin, and it is nonetheless most likely going to be linked to the greenback indirectly,” Timmer stated.