Fidelity Investments' global macro director, Urrien Timmer, recently shared insights on the factors crucial for Bitcoin to achieve its all-time high (ATH). Timmer, in a discussion shared on a social media platform, highlighted the significance of Bitcoin adoption in this endeavor.

The Relationship Between Adoption and Price

Timmer observed a slowdown in Bitcoin network growth despite the rising price, indicating a notable discrepancy. He pointed out that this disparity could be affecting Bitcoin's current performance. Timmer emphasized the necessity of accelerating network growth for Bitcoin to reach new ATHs. Additionally, he suggested that the upcoming stage, focusing on monetary compliance in the financial dominance narrative, could prompt this growth.

In his analysis, Timmer also underscored Bitcoin's competitiveness as a store of value compared to gold. He attributed Bitcoin's price surge to its scarcity and the policies of central banks. According to Timmer, Bitcoin functions as a form of "exponential gold" and plays a crucial role in the value storage landscape. The combination of Bitcoin's unique scarcity, financial and monetary cycles, and market sentiment are fundamental factors influencing its price dynamics.

Adoption Trend and Network Expansion

Timmer acknowledged the robust nature of Bitcoin's adoption curve, evident in the increasing number of wallet addresses with positive balances. However, he stressed the need for higher adoption rates for a substantial rise in Bitcoin's price. Using a graph depicting Bitcoin's network growth on a power curve, Timmer demonstrated the alignment of the number of wallet addresses with a non-zero balance with this curve, indicating that Bitcoin's price movements mirror this curve like a pendulum.

Bitcoin's price behavior is characterized by distinctive boom-bust cycles influenced by factors such as network growth, scarcity, and macroeconomic policies. Timmer's analysis suggests that the fluctuations in Bitcoin's price are inherent to market dynamics and strongly connected to network expansion.

Currently, Bitcoin is traded at approximately $67,000, experiencing a 1.09% decline in the last 24 hours. Data reveals a 6.62% decrease in BTC over the past 7 days.