- Jurrien Timmer, Global Macro Director at Fidelity Investments, likens crypto’s boom and bust cycles to the tech bubble, anticipating Bitcoin could emerge as the ‘Apple’ of digital assets.
- Using an overlay of Bitcoin’s current chart over Apple and a two-decade-old internet stock index, Timmer suggests Bitcoin’s price movement mirrors Apple’s trajectory post the dot-com bust.
Fidelity Investments’ Global Macro Director, Jurrien Timmer, has drawn a compelling comparison between the alternating bullish and bearish cycles of crypto assets and the dot-com bubble’s trajectory. Just as tech stocks like Amazon and Apple emerged victorious from the tech bubble, Timmer anticipates a similar scenario unfolding within the crypto industry, with certain digital assets rising from the ashes, while others falter.
In Timmer’s perspective, Bitcoin (BTC) could potentially play the role of ‘Apple’ in the realm of digital assets. He elucidates,
“The dot-com bubble of the late 1990s catapulted several unwarranted stocks to staggering heights, only for them to lose substantial or all their value post the bubble burst. Through this process, long-term victors such as Apple and Amazon were distinguished from the losers. This trend seems to be reflecting in the crypto world as well.”
“If we perceive Bitcoin as the ‘Apple’ of the digital asset epoch, then it’s conceivable that Bitcoin not only survives the crypto winter but thrives and gains market share from other digital assets,”
Drawing on two decades-old data, Timmer overlays Bitcoin’s current chart with Apple and an internet stock index, implying that BTC’s price action resembles that of Apple post the dot-com bubble. He explains,
“The defunct Interactive Internet Index (IIX), an index of internet stocks, witnessed its value cycle from zero to bubble and back to nothing. Comparing this with Bitcoin’s current trajectory reveals striking similarities.”
Apple’s stock, despite suffering a significant dip during the dot-com burst, managed to rebound, becoming a dominant force in the tech sector, while many other stocks faded into oblivion. Timmer speculates a similar fate could be in store for Bitcoin.
Having ended 2002 at $0.22, Apple (AAPL) was trading at $177.25 as of Wednesday’s close, a remarkable gain of approximately 80,345%. Whether Bitcoin can replicate such a prodigious surge remains to be seen.