Jurrien Timmer, director of global macro at Boston-based mutual fund behemoth Fidelity, believes that Bitcoin exchange-traded funds (ETFs) appear to be one of the main catalysts behind the recent rally that nearly brought the largest cryptocurrency to the much-coveted $100,000 price mark.
The Fidelity executive has also taken note of levered speculators pushing Bitcoin’s open interest (OI) higher. “But it’s not just cash jumping on the trend. The open interest in the futures market is soaring as well, driven by hedge funds and levered speculators,” he said.
As reported by U.Today, Galaxy Digital CEO Mike Novogratz recently predicted that Bitcoin would inevitably surge higher. However, he also warned against excessive leverage. The Bitcoin bull correctly predicted that there would be a significant correction.
Earlier this week, Bitcoin dipped to as low as $90,742 on the Bitstamp exchange before paring most of its losses.
Bitcoin remains in its value range
Timmer has also opined that the leading cryptocurrency by market cap “sits squarely” in its fair value range.
“If the power law of Bitcoin’s expanding network (amplified by real rates and the money supply) is the best way to value this most intriguing asset, then Bitcoin sits squarely in its fair value range,” he said in a recent social media post.
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The Bitcoin valuation model cited by Timmer is based on such factors as the cryptocurrency’s hypothetical adoption curve, real rates, and money supply.
The leading cryptocurrency is currently changing hands at $96,386 after adding 4.7% over the past 24 hours.
Bitcoin is now only 3.4% away from reclaiming its record high of $99,645 which was achieved five days ago.