Fidelity Investments’ global macro director, Jurrien Timmer, believes that Bitcoin (
BTC
) needs a boost in adoption to reach new all-time highs (ATHs).

Timmer shares with his 186,600 followers on X that the growth of Bitcoin’s network has slowed down while its price has continued to rise. He suggests that this discrepancy between price and adoption could be the reason for Bitcoin’s recent slowdown on its journey to potential new ATHs. Timmer speculates that for Bitcoin to continue hitting new highs, the network may need to pick up speed again, possibly driven by the next phase in the fiscal dominance thesis.

The analyst also sees Bitcoin as a viable competitor to gold as a store of value. He attributes the growth in Bitcoin’s price to its scarcity and the policies of central banks. Timmer describes Bitcoin as the “exponential gold” and an emerging player in the store of value arena. He emphasizes that the price of Bitcoin is primarily influenced by the expansion of its network, which is fueled by its unique scarcity feature, as well as monetary and fiscal policy cycles, along with sentiment.

Timmer believes that Bitcoin’s adoption curve is progressing as expected based on the increase in non-zero addresses, but he suggests that further growth is necessary for the price to start climbing. He illustrates Bitcoin’s expanding network on a power curve, with the number of non-zero addresses aligning with this curve, while Bitcoin’s price fluctuates around it, following a distinctive pattern of boom-bust cycles.

Bitcoin is currently trading at $66,676, experiencing a slight decline in the past 24 hours.

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Image Source: Jurrien Timmer/X

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