- Bitcoin nonetheless has extra upside left, with Constancy director Jurrien Timmer anticipating a surge to $100,000 by 2023.
- Timmer believes the current rally in bitcoin shall 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 continuing rally in bitcoin can proceed to report heights over the following two years, in keeping with Constancy director of World/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 current 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 only 15%. This tells me there might 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 date in October, with the favored cryptocurrency reclaiming several key resistance levels.
However Timmer would not see bitcoin’s current 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 said an interview with CNBC on Wednesday.
If bitcoin does hit $100,000 value, many imagine 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 finally it goes from simply being a retailer of worth to additionally being a medium of change, and that is determined by second layer [developments] which are being constructed proper now,” Timmer mentioned.
The truth is, Timmer believes bitcoin’s rising attain may strengthen the US greenback’s standing because the reserve foreign money used globally.
“Perhaps [bitcoin] truly additional ensures that the greenback will keep its reserve standing as a result of unexpectedly foreign money goes to be accessible in farther flung reaches of the world, by way of bitcoin, and it is nonetheless most likely going to be related to the greenback not directly,” Timmer mentioned.