Fidelity’s director of global macro, Jurrien Timmer, has shared some perspective on bitcoin’s price action by comparing it to gold during the 1970s, and noted charts suggest the cryptocurrency’s bullish phase may not be over.

In a Twitter thread, Timmer revealed that bitcoin is an aspiring asset class “that looks to be coming of age, much as gold did during the 1970s.” At the time, he said, gold was a known commodity but it was extremely volatile while giving investors returns of up to 20x.

The precious metal then suffered large drawdowns on a regular basis, much like Bitcoin does nowadays. The cryptocurrency is a “relative newcomer” but “scarcity and network effects” are helping its price move upward.

To Timmer, bitcoin’s potential upside is greater than that of gold, but so are its potential drawdowns. Per his words, that “is the definition of price discovery.” The analyst compared bitcoin’s price performance since its 2019 against hold during the 1970s, noting that “gold’s price discovery was highly volatile, much like bitcoin today.”

While he pointed out price analogs are “highly subjective,” the chart shows BTC’s current drawdown “could be seen as a bump in the road.” He added a chart showing bitcoin’s stock-to-flow model, before noting it suggests “that bitcoin is not done with its current bullish phase.”

As CryptoGlobe reported, in June Timmer revealed he believed bitcoin’s price bottom was in for its current bull run. The price of bitcoin has fallen from a near $64,000 all-time high to little under $30,000 before recovering, and has been testing the $40,000 mark since then.

Timmer had earlier revealed he found bitcoin “lends itself well to technical analysis,” and revealed he is a “secular bull.” In his view, however, the run-up to $64,000 was “a bit too much too fast” as it almost prematurely reached its year-end target of $68,000 per BTC.

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