Bitcoin [BTC] is down almost 7% in the last week, because the market affect of the recently approved BTC ETF works its manner via the system. Whereas many contrarian bets about the price of bitcoin after the ETF approval have been confirmed proper, Fidelity’s Jurrien Timmer does not count on the sell-off to proceed for much longer.
In a thread on X, Timmer, Fidelity’s Director of International Macro, stated present developments in bitcoin’s worth are suggestive of a short-term positioning adjustment relatively than a long-term development reversal.
Whereas some have forecasted that bitcoin would possibly drop and discover assist anyplace between the $32K to $38K mark, Timmer expects consolidation of latest beneficial properties.
“The short-term query is whether or not this a sell-the-news second. My guess is that it’s going to take some time to consolidate the latest beneficial properties, now that the large second has arrived,” Timmer posted on X. “There have been quite a lot of individuals who ‘equitized’ future spot positions via both the futures market or bitcoin-sensitive equities.”
Nicely, the second lastly got here final week, which may be very thrilling to say the least. Will this be a brand new chapter in direction of Bitcoin’s widespread adoption as a commodity-currency? 🧵
— Jurrien Timmer (@TimmerFidelity) January 16, 2024
Per Timmer, bitcoin’s present worth is affordable and is affected by how a lot its community is rising and the precise rates of interest within the financial system and the longer-term prospects look vivid.
“”Will this be a brand new chapter in direction of Bitcoin’s widespread adoption as a commodity-currency?” Timmer posted. “Plainly manner, though it might take a while to get there.”
Whereas the rally has stalled, many asset managers, in accordance to Timmer, proceed to have a major internet lengthy place within the bitcoin futures market.
In the meantime, CoinDesk recently reported that for the primary time ever, Bitcoin’s 50-week easy transferring common has crossed above its 200-week common.
This occasion is named a “golden cross,” which suggests a long-term bullish market, though its predictive accuracy is debated amongst merchants.