Fidelity's Jurrien Timmer Explains Why He Still Prefers Bitcoin Over Gold
Fidelity's Director of Global Macro, Jurrien Timmer, maintains his preference for Bitcoin over gold despite both assets facing selling pressure in risk-off markets.
Timmer stated in a recent X post that he still prefers Bitcoin to gold, pointing to its relative price performance despite the selloff affecting both assets. His comments come amid a broader shift toward risk-off sentiment in financial markets, where traditional safe-haven assets like gold and cryptocurrencies like Bitcoin have both experienced selling pressure.
Market Correlation
Timmer noted that Bitcoin and gold have been following equities more closely in recent weeks, joining the broader market's risk-off movement. According to his analysis, both assets currently show a 60-70% correlation to the S&P index, indicating a stronger relationship with traditional equity markets than previously observed.
As for gold and Bitcoin, unfortunately they have gotten more correlated to equities lately and have joined the risk-off party in recent weeks. Both assets are 60-70% correlated to the SPX right now.
Bitcoin's Potential
Timmer's preference for Bitcoin isn't without foundation, as he previously suggested in mid-2024 that Bitcoin might be entering a new 4-year cycle bull market based on its power law patterns. This potential bull market could explain his continued optimism despite current market conditions.
The Bitcoin market currently shows mixed price action, with the cryptocurrency down 0.08% in the last 24 hours to $75,904. Investors are assessing a stronger-than-expected jobs report that strengthened the case for another rate cut at next month's Federal Reserve policy meeting, with unemployment unexpectedly falling to 4.1%.
Markets are pricing in a more than 77% chance of a quarter-point rate cut at the December 9 Fed meeting, though next week's inflation numbers and the fate of the equities market could prove more important in the Fed's decision-making process.
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