Fidelity Investments analyst Jurrien Timmer, who is responsible for all macroeconomic analyzes of the investment giant, is very bullish about the digital currency again after the recent revival of Bitcoin. Timmer informed his more than 173,000 followers on Twitter (or
He bases this analysis on two factors.
Bitcoin price based on interest and internet adoption
The first scenario he puts on the table for Bitcoin when it comes to the price development in the coming years is an analysis of the potential interest rates in the United States. Basically, Timmer’s model for this is fairly simple.
A higher interest rate means a lower price and vice versa.
“I created a value bandwidth based on the speed of adoption of the internet (which is roughly in line with Bitcoin) and the path of real interest rates. The bottom assumes a scenario in which real interest rates remain at +2.5 percent (where we are now) and the top assumes a real interest rate of -2 percent (which is what we saw in 2021).
Macroeconomic conditions can accelerate or delay Bitcoin adoption, which is what we recently saw happening,” said Timmer.
What prices does that yield for Bitcoin?
In the most negative scenario, in which we have to make do with real interest rates of +2.5 percent for the foreseeable future, Timmer predicts that we will see a Bitcoin price of around $41,553 on the boards in 2025.
However, if interest rates drop to the level of -2 percent (which we saw in 2021), he predicts that the Bitcoin price could rise to $96,210 per coin in 2025.
From the current price, this would mean an increase of 175 percent for the digital currency. At the time of writing, that price still seems far away, with the current price value of $ 34,877 per Bitcoin.
But we all know that this could change quickly if, for example, we get the approval of the Spot Bitcoin ETF in the United States of America.
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