Jurrien Timmer, Director of Global Macro at Fidelity, has shared insights suggesting that the recent trends in Bitcoin’s price are indicative of a short-term adjustment rather than a long-term trend reversal. Timmer made these observations in a thread on X.<\/p>\n\n\n\n
According to Timmer, the current sell-off in Bitcoin is viewed as a short-term phenomenon, often described as a “hangover” following the launch of spot Bitcoin Exchange-Traded Funds (ETFs).<\/p>\n\n\n\n
Bitcoin’s Price Consolidation Amid ETF Impact<\/strong><\/p>\n\n\n\n In the past week, Bitcoin has seen a 6% decline, attributed to the market dynamics associated with the newly approved spot Bitcoin ETFs.<\/p>\n\n\n\n Despite some expectations of Bitcoin’s price dropping to find support within the $32K to $38K range, Fidelity’s Jurrien Timmer does not anticipate the sell-off to continue for an extended period.<\/p>\n\n\n\n Timmer characterizes the current situation as a “sell-the-news moment” and foresees a consolidation of recent gains. He suggests that market participants may have converted future spot positions into futures contracts or Bitcoin-sensitive equities.<\/p>\n\n\n\n Furthermore, Timmer notes the significant increase in open interest (OI) in recent weeks, along with fluctuations in the Goldman Sachs Bitcoin-sensitive equities index. He expects a potential decline in open interest in the coming weeks as asset managers transition their proxy exposure from futures to spot positions.<\/p>\n\n\n\n Considering factors such as the growth of Bitcoin’s network and prevailing interest rates, Timmer regards Bitcoin’s current price as reasonable.<\/p>\n\n\n\n He expresses optimism regarding Bitcoin’s long-term prospects, suggesting that this could mark a new phase in its widespread adoption as a commodity currency, albeit acknowledging that it might take some time to fully materialize.<\/p>\n\n\n\n Bitcoin Price Declines Contrary to Expected Rally<\/strong><\/p>\n\n\n\n Spot Bitcoin ETFs have garnered nearly $1 billion in the first three days of trading, indicating a cautious but positive response from investors to these new stock market instruments that track the cryptocurrency.<\/p>\n\n\n\n BlackRock, Franklin Templeton, Invesco, and others collectively attracted $984 million in inflows since their launch. BlackRock, as the world’s largest asset manager, led the way with $508 million in inflows, followed by Fidelity with $442 million.<\/p>\n\n\n\n The approval of these funds by the U.S. Securities and Exchange Commission (SEC) was a notable milestone in the cryptocurrency space, marking significant progress after more than a decade of rejections. Supporters anticipate that the availability of spot Bitcoin ETFs will attract new investors to the cryptocurrency, potentially contributing to its long-term price growth.<\/p>","protected":false},"excerpt":{"rendered":" Jurrien Timmer, Director of Global Macro at Fidelity, has shared insights suggesting that the recent trends in Bitcoin’s price are indicative of a short-term adjustment rather than a long-term trend reversal. <\/p>","protected":false},"author":1,"featured_media":4145,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[35,44],"class_list":["post-4144","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitocin","tag-blockchain"],"_links":{"self":[{"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/posts\/4144","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/comments?post=4144"}],"version-history":[{"count":1,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/posts\/4144\/revisions"}],"predecessor-version":[{"id":4146,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/posts\/4144\/revisions\/4146"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/media\/4145"}],"wp:attachment":[{"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/media?parent=4144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/categories?post=4144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/tags?post=4144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}