Jurrien Timmer believes that BTC price could reach by 2023 $ 100,000. He spoke about BTC and its true potential for CNBC.
Timmer: The price of BTC is on the verge of an explosion
At first glance, many, including some analysts, may still have doubts about this prediction, especially given the major hurdles BTC has gone through in recent months. After reports that Elon Musk cancels its decision to allow customers to pay for Tesla vehicles in BTC and that China expels all its crypto miners from the ground, the price of coin has dropped dramatically. For a short time, the currency traded below the threshold $ 30,000 – which is more than 50% decrease compared to mid-April ($ 64,000).
At the same time, the currency has undergone a rally in the last few weeks, when after some time it has finally crossed the line $ 40,000 and grew to less than $ 63,000. It’s almost a profit $ 23,000 in a relatively short time and again we get proof growing resistance of BTC. There is nothing that the cryptocurrency would not be able to do. We saw it firsthand, and no matter how much it seems to be declining, BTC was able to recover again almost immediately.
So, considering the fact that 2023 is still two years away and BTC is now over $ 60,000, yes $ 100,000 by the end of this year, it does not seem a very distant goal. On the contrary, this fundamental limit is at your fingertips. In an interview, Timmer said:
“This rally came with small fanfare and does not seem to be driven by pursuers of development dynamics. The percentage of coins held by short-term “tourists” has dropped to just 15 percent. That tells me there could be room for growth if these persecutors joined. ”
He further mentioned that the price of BTC had bottomed out many times in the past only when the number of short-term BTC holders dropped to about 30%. Timmer says things have improved dramatically since then, he also noticed a few correlation between the price of BTC and the price of gold, and further indicated that the asset simply follows in the footsteps precious metals.
When asked about BTC’s relationship with gold, Timmer acknowledges the superiority of BTC, but does not realize that the leading cryptocurrency naturally replaces the inferior store of value, which is gold.
He is convinced that BTC will keep its place and that in its market there is no bubble, as many other analysts suggest. Timmer explains:
“It’s a fairly sustainable development, and it’s not a bubble that should burst.”
BTC will not stand in the way of the dollar
But perhaps Timmer’s short-sightedness is more clearly demonstrated by his thoughts on the dynamics of the dollar and BTC.
He is sure of the growth of BTC will not affect the health of the US dollar, as many regulators in Congress seem to believe. He remarked:
“I really don’t think BTC threatens the dollar or the state of the dollar’s reserves. The prediction of BTC’s value is that, in the end, it also goes from a mere store of value to the medium of exchange, which depends on the development of the second layers that are being built. “
Most analysts agree that BTC will cross the line $ 100,000 by the end of this year, not until the next. Such a development would be rather disappointing for the markets. Given the strength that BTC has shown, Timmere’s prediction seems too grounded and detached from reality, due to his misunderstanding of BTC. After all, Timmer himself admitted his caution when he said that “It’s really just a conservative estimate based on the intersection of my supply model with the demand model.”