Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Bitcoin Has Entered The More Mature Part Of Its Adoption Cycle: Fidelity

Bitcoin Has Entered The More Mature Part Of Its Adoption Cycle: Fidelity

CryptopotatoCryptopotato2024/06/04 20:52
By:Author: Andrew Throuvalas

Bitcoin’s maturity also means less price volatility, though that can also bring more institutions into the asset, according to Fidelity’s Jurrien Timmer.

Bitcoin is already entering the latter part of its S-curve adoption cycle, leading to less volatility for the asset than old investors may be used to, according to Fidelity’s Director of Global Macro Jurrien Timmer.

During an interview published on Tuesday, the macro analyst explained how he believes Bitcoin will size up next to gold, and where the asset belongs within a traditional 60/40 portfolio.

Bitcoin’s Place Among Traditional Assets

Timmer acknowledged that the recent approval of Bitcoin spot ETFs in January has helped “democratize” the asset, putting it “on the menu” for investors regardless of their technical sophistication.

This allows investors to analyze Bitcoin right alongside stocks, bonds, and ETFs, when determining how to construct their portfolio, and when looking to an investment to fulfill a particular need.

“It’s an exponential version of gold,” said Timmer, likening Bitcoin to other “hard assets” that perform well when interest rates are low, or during periods of fiscal dominance.

However, while Bitcoin may appreciate against those other assets and possibly eat into their markets, Timmer says there will be a point of “mean reversion” where investors return to buying them for their cheap relative valuations.

[If] gold is at $2000 and Bitcoin is at $1 million , at some point investors are gonna say… ‘these other asset classes are really becoming cheap while this side is becoming expensive.’”

In terms of Bitcoin’s place within a portfolio, Timmer said that a 2% allocation would “make an impact” for buyers given that the asset’s risk-adjusted returns are “in another universe.”

“It’s enough to matter just because of the return profile that we’ve seen, but not so much that it’s going to make you wanna sell everything when it goes against you,” he said.

Bitcoin’s Maturity And Decreasing Volatility

While acknowledging that Bitcoin is currently a “boom and bust” asset, Timmer said he predicts Bitcoin will “eventually mature into something less than that,” much like gold. This could be a boon for many corporations that incentivizes them to buy more, he argued, as they can use BTC in lew of cash that they rely upon to have stable short-term value.

“Part of growing up means transcending that dynamic,” Timmer said. “As adults, we don’t behave the same way as we did when we were teenagers… less volatility means fewer crashes but fewer moons as well, and I think that’s a good thing.”

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!