Bitcoin’s recent 7% decline following the approval of the BTC ETF has sparked discussions about potential further drops, but Fidelity’s Director of Global Macro, Jurrien Timmer, disagrees.
Timmer views the current market movement as a short-term adjustment rather than a reversal of the long-term trend.
While some anticipate a drop to support levels between $32K and $38K, Timmer expects a consolidation of recent gains.
He notes that despite the short-term fluctuations, Bitcoin’s current price is reasonable, considering network growth and prevailing interest rates.
Timmer sees this as a step toward Bitcoin’s broader adoption as a commodity-currency, although acknowledging it might take time.
Despite the temporary stall in the rally, asset managers maintain a significant net long position in the bitcoin futures market. Additionally, Bitcoin’s 50-week simple moving average recently crossed above its 200-week average for the first time.
