Over the past week, the market has experienced a decline of about 7% due to the gradual implementation of the newly approved Bitcoin ETF.Although many of the skeptics’ predictions regarding the price of bitcoin following the introduction of the ETF have come true, Jurrien Timmer of Fidelity believes the sell-off will not last much longer.The present movements in the price of bitcoin, according to Timmer, Fidelity’s Director of Global Macro, point more toward a short-term positioning adjustment than a long-term trend reversal.
According to Timmer, the price of bitcoin is currently fair and is influenced by the rate at which the economy’s real interest rates are rising as well as how quickly its network is expanding. Longer-term prospects are promising.
Timmer anticipates a stabilization of the recent gains, contrary to several forecasts that suggest bitcoin may decline and find support between $32K and $38K.
“The short-term question is whether this a sell-the-news moment. My guess is that it will take a little time to consolidate the recent gains, now that the big moment has arrived,” Timmer posted on X. “There were more than a few participants who ‘equitized’ future spot positions through either the futures market or bitcoin-sensitive equities.”
“Will this be a new chapter towards Bitcoin’s widespread adoption as a commodity-currency?” Timmer posted. “It seems that way, although it could take some time to get there.”
Timmer claims that even if the rally has paused, a large number of asset managers are still net long in the bitcoin futures market.CoinDesk recently revealed that Bitcoin’s 50-week simple moving average has surpassed its 200-week average for the first time ever.This phenomenon is referred to as a “golden cross,” and while traders disagree on its predictive accuracy, it indicates a long-term bullish market.