- Financial director Fidelity's Jurrien Timmer believes a weaker dollar will boost Bitcoin.
- Gold will also benefit from the US Treasury's policies.
On Thursday, August 27, Bitcoin rose above $80,000 again . The cryptocurrency continues its sharp recovery from its July lows, thanks to renewed demand for spot BTC exchange-traded funds.
At $80,057, Bitcoin is up 2% in the last 24 hours, 10,2% in seven days, and 25,5% in the last month.
In a social media post, Fidelity's Jurien Timmer wrote that the dollar's continued weakness could be a major factor driving the rise of the world's leading cryptocurrency by market cap.
Tellingly, the Treasury's actions last week to buy additional long-term securities and issue new bills led to a drop in the dollar and a sharp rise in the prices of gold and Bitcoin , Timmer wrote.
Fidelity data
Markets are beginning to price in a potential "slippery slope" to fiscal dominance, in which government financing needs increasingly constrain monetary policy, Timmer said.
The Treasury Department's decision to increase its purchases of long-term government bonds is undoubtedly the main catalyst for Bitcoin's rapid rise. On August 19, the Treasury Department announced it would at least double the maximum size of its bond purchase programs with maturities between 10 and 30 years to improve liquidity. The dollar weakened sharply, while gold and Bitcoin surged.
Timmer previously argued that Bitcoin could benefit from the same "uptrend" that supports gold. However, he doesn't rule out gold leading the charge.
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