HomeFinance NewsFidelity Analyst: Bitcoin May Benefit During Economic Crisis - Here's Why

Fidelity Analyst: Bitcoin May Benefit During Economic Crisis – Here’s Why

Published on

Fidelity Investments’ global macro director, Jurrien Timmer, predicts that a recession could lead to a significant rally for Bitcoin. In a Twitter post, Timmer stated that for Bitcoin to see substantial gains, current high-interest rates need to decline. He presented a chart that indicates Bitcoin’s expected price range based on its adoption rate and real interest rates. According to the chart, if interest rates decrease, Bitcoin could reach a high of $96,210 by the end of 2025. Timmer believes that in a recession, the Federal Reserve would pivot, causing investors to view Bitcoin and gold as safe-haven investments and drive their prices higher. Furthermore, Timmer suggests that Bitcoin may offer uncorrelated returns in the next market cycle.

Timmer’s analysis suggests that Bitcoin’s performance is influenced by macroeconomic factors such as interest rates and market conditions. Despite its high volatility, Bitcoin’s correlation with equities has decreased recently. Timmer contends that the Federal Reserve’s injection of liquidity into the markets, as it did during the Covid-19 pandemic, is crucial for Bitcoin to reach new all-time highs. He argues that when the money supply exceeds its long-term growth rate, Bitcoin and gold have thrived. As of now, Bitcoin is trading at $26,931, experiencing a 0.5% decrease in the last 24 hours.

In summary, Timmer predicts that a recession and a decrease in interest rates could lead to a substantial rally for Bitcoin. He believes that the Federal Reserve’s actions and market conditions will play a crucial role in Bitcoin’s performance.

Source link

Latest articles

Waterfront Restoration’s Expert Aquatic Weed Removal in Long Lake, MN

Frustrated by the weeds and invasive species preventing his family from enjoying the lake,...

Enhancing Paradise: The Ultimate Guide to Landscape Concrete Edging in Hawaii Island for Unbeatable Curb Appeal

As a Hawaii resident deeply entwined with your island roots, you understand the irresistible...

Leading-edge Irrigation Maintenance Services in Port Charlotte, FL by Shaffer’s Irrigation

Boosting the health of your landscape through efficient irrigation requires skill, knowledge and experience....

Experience Remarkable Terrazzo Refurbishing in Sarasota, FL with Intra State Terrazzo and Concrete

Keen on understanding the intricacies that underline the worth of hiring qualified service professionals...

More like this

Waterfront Restoration’s Expert Aquatic Weed Removal in Long Lake, MN

Frustrated by the weeds and invasive species preventing his family from enjoying the lake,...

Enhancing Paradise: The Ultimate Guide to Landscape Concrete Edging in Hawaii Island for Unbeatable Curb Appeal

As a Hawaii resident deeply entwined with your island roots, you understand the irresistible...

Leading-edge Irrigation Maintenance Services in Port Charlotte, FL by Shaffer’s Irrigation

Boosting the health of your landscape through efficient irrigation requires skill, knowledge and experience....