Fidelity Expert: BTC Price Drop is Short-Term Adjustment
Fidelity’s Global Macro director, Jurrien Timmer, believes that the recent 7% drop in Bitcoin’s price is not a sign of a long-term trend reversal but rather a short-term positioning adjustment after the launch of spot BTC-ETFs.
Well, the moment finally came last week, which is very exciting to say the least. Will this be a new chapter towards Bitcoin’s widespread adoption as a commodity-currency? 🧵
— Jurrien Timmer (@TimmerFidelity) January 16, 2024
Consolidation of Recent Gains Expected
Timmer disagrees with analysts who predict a reversal in BTC price and expects the recent gains to consolidate. He suggests that it may take some time for the market to absorb the impact of the ETF launch and stabilize.
“The short-term question is whether this is a sell-the-news moment. It will take a little time to consolidate the recent gains now that the big moment has arrived.”
Jurrien Timmer, Global Macro Fidelity director
Reasonable BTC Price with Positive Long-Term Prospects
Timmer believes that the current price of Bitcoin is reasonable and depends on factors such as network growth and interest rates in the economy. He remains optimistic about its long-term prospects.
Despite the recent price drop, many asset managers still maintain significant net long positions in the Bitcoin futures market.
Bitcoin ETF Launch and Price Impact
Last week, the U.S. Securities and Exchange Commission (SEC) approved the launch of 11 BTC ETFs. However, the positive news did not boost BTC’s price, which fell by 7% to $42,800 at the time of writing.
Data from Bloomberg analyst James Seyffart shows that spot Bitcoin ETFs in the United States have reached a trading volume of nearly $10 billion.
Hot Take: BTC Price Drop Not a Trend Reversal
According to Fidelity’s Jurrien Timmer, the recent drop in Bitcoin’s price is merely a short-term adjustment following the launch of spot BTC-ETFs. Timmer expects the market to consolidate its recent gains after the initial excitement. He believes that the current price of Bitcoin is reasonable and remains optimistic about its long-term prospects. Despite the price drop, many asset managers still maintain significant positions in Bitcoin futures. The approval of Bitcoin ETFs by the SEC did not have a positive impact on BTC’s price. Instead, it fell by 7% over the past week. However, spot Bitcoin ETFs in the United States have seen substantial trading volume, indicating continued interest in Bitcoin as an investment.
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