Bitcoin, which fell after the non-farm payrolls data released in the US last week, but rose after the inflation figures and the Fed decision this week, could not exceed the $70,000 level again. While investors are questioning whether the uptrend is over, Fidelity manager Jurrien Timmer stated that new peaks can only come with the growth of the Bitcoin network.

“The record will perhaps come with the thesis of financial dominance”

Fidelity’s global macro manager, who made some evaluations through his account on X, drew attention to the mismatch between price and adaptation and said:

“Network growth has slowed in Bitcoin in recent months. But we’ve also seen the price increase and remain high. This price-adoption mismatch may actually be behind Bitcoin’s inability to set new records. The Bitcoin price has been and will continue to swing like a pendulum around the growth curve. So for records to be set, the network needs to start growing again. How will this happen? Perhaps with the arrival of the next phase of the financial dominance thesis…”

Timmer’s fiscal dominance thesis is based on the mismatch between countries’ fiscal and monetary policies. While taxation, government spending and debt purchases constitute fiscal policies, the monetary policies of the central bank can sometimes be ineffective. This constitutes the fiscal dominance thesis.

So, as the US, the world’s largest economy, rises in debt and its GDP ratio declines relative to debt, it could trigger a flight to Bitcoin-style assets. According to Timmer, this could accelerate the regrowth of the Bitcoin network.

In his tweets, the Fidelity executive also said that Bitcoin is a far superior asset than gold.