- 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 will probably be additional fueled by momentum merchants.
- Bitcoin’s 31% October rally is “sustainable” and is “not a bubble that is about to burst,” Timmer mentioned.
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The continued rally in bitcoin can proceed to document heights over the following two years, in response to Constancy director of International/Macro Jurrien Timmer.
Based mostly 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 would not appear pushed by momentum chasers. The share of cash held by short-term ‘vacationers’ is down to simply 15%. This tells me there could possibly be room to run if momentum chasers pile in,” Timmer said.
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 this point in October, with the favored cryptocurrency reclaiming several key resistance levels.
However Timmer would not see bitcoin’s latest transfer as “extreme,” based mostly on the relative value motion between bitcoin and gold. “That is really is a fairly sustainable transfer, and it is not a bubble that is about to burst,” he said an interview with CNBC on Wednesday.
If bitcoin does hit $100,000 value, many consider the cryptocurrency could become a threat to the US dollar and its standing because the reserve foreign money of the world. However Timmer says not a lot.
“I actually do not suppose bitcoin threatens the greenback or the greenback’s reserve standing. Bitcoin’s worth proposition is that in the end it goes from simply being a retailer of worth to additionally being a medium of trade, and that is dependent upon second layer [developments] which might be being constructed proper now,” Timmer mentioned.
In actual fact, Timmer believes bitcoin’s rising attain may strengthen the US greenback’s standing because the reserve foreign money used globally.
“Possibly [bitcoin] really additional ensures that the greenback will keep its reserve standing as a result of rapidly foreign money goes to be obtainable in farther flung reaches of the world, by bitcoin, and it is nonetheless most likely going to be related to the greenback in a roundabout way,” Timmer mentioned.