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Fidelity’s Director Predicts Bitcoin Market Cap to Reach $6 Trillion
Fidelity’s Director of Global Macro, Jurrien Timmer, has suggested that the Bitcoin (BTC) market cap has the potential to reach a quarter of the “monetary gold” market, hitting an impressive $6 trillion.
Timmer’s Analysis and Forecast
Jurrien Timmer’s forecast is based on the assumption that Bitcoin will solidify its position as digital gold and a reliable store of value. His analysis draws a parallel between the portion of gold held for monetary purposes, estimated at 40% of the world’s above-ground gold, and the potential market value of Bitcoin.
Market Comparison and Potential Growth
Jurrien Timmer noted that the monetary gold, excluding jewelry or industrial uses, is currently valued at around $6 trillion, with central banks and private investors holding this significant share. He argued that Bitcoin could capture a substantial slice of this market, leveraging its current valuation of $1 trillion as a foundation for further growth.
He estimated that Bitcoin will eventually capture around a quarter of the monetary gold market, positioning itself to reach a value of $6 trillion.
Bitcoin’s Alignment with Gold’s Monetary Role
To assess the credibility of Timmer’s forecast, it is important to consider the inherent characteristics of Bitcoin that align it with gold’s monetary role. These include the scarcity resulting from its limited supply and its increasing acceptance as a hedge against inflation and currency devaluation.
Bitcoin’s digital nature and decentralized framework position it as a modern alternative to gold, particularly appealing to tech-savvy individuals and a younger demographic of investors.
Market Analysis and Predictions by Other Analysts
Meanwhile, analysts from different firms have shared bullish predictions for Bitcoin’s future market performance. Matrixport predicts that Bitcoin could reach a target of $63,000 by March 2024, identifying key catalysts that could propel Bitcoin to new heights, including the recent approval of spot Bitcoin ETFs, the upcoming halving event, and interest rate cuts.
Bitwise Chief Investment Officer Matt Hougan also expects Bitcoin to soar beyond $80,000 this year thanks to the recent success of spot ETFs.
Analysts at investment firm Bernstein expect Bitcoin to resume its upward trajectory, surpassing its previous all-time high of $69,000 and potentially reaching $70,000 this year, expressing confidence in the cryptocurrency’s risk-reward profile.