Fidelity’s head of digital assets says bitcoin uptake continues “at an accelerated pace”, noting that “we have reached a turning point.” He explained that investors are increasingly attracted to bitcoin “Especially in an environment where we have seen an unprecedented monetary and fiscal stimulus from central banks and governments in response to the pandemic.”
The Tipping Point for Bitcoin Adoption
Tom Jessop, president of Fidelity Digital Assets at Fidelity Investments, spoke about the adoption of bitcoin on Wednesday during an interview on Marketwatch and Barron’s “Investing in Crypto” event. Jessop is also Head of Corporate Business Development for Fidelity Investments.
The Fidelity director says the maturation and adoption of bitcoin as an investment class “will continue at a rapid pace in the coming years,” Marketwatch detailed, adding that this suggests that cryptocurrency may have turned a corner in traditional financial circles.
He was quoted as saying:
I think we continue to see adoption at an accelerated pace for a number of reasons.
The head of digital assets at Fidelity has previously talked about the bitcoin market becoming more mature. “There is more liquidity. Volatility has fallen by about 50% from where it was in 2017. So … we believe that the composition of this investor base, what drives the market higher today, is fundamentally different from what we saw three years ago, He said in January.
Jessop further explained on Wednesday why investors are increasingly drawn to bitcoin, citing factors such as ultra-low interest rates and an environment stimulated by easy money policies.
“I think you have had the accumulated experience that about 12 years of bitcoin blockchain have been in operation since the origin block in early 2009. And the pandemic was honestly a catalyst for institutional adoption, and especially bitcoin and the narrative or use-case, around digital gold, ”Jessop described.
The Fidelity director elaborated, “Especially in an environment where we have seen an unprecedented monetary and fiscal stimulus from central banks and governments in response to the pandemic,” he added:
I think we’ve reached a turning point … We’ll not get out of this stimulated environment anytime soon.
Jessop is not the only CFO who believes bitcoin has reached a turning point. Bitcoin bull Mike Novogratz, CEO of Galaxy Digital, said last month that “Bitcoin adoption has hit a turning point and investors do not want to sit on the sidelines.” His comment followed the approval of some bitcoin exchange traded funds (ETFs) in Canada. Meanwhile, investment bank Goldman Sachs is also seeing the bitcoin market mature.
Do you agree with Tom Jessop on the starting point for the adoption of bitcoin? Let us know in the comments section below.
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