Fidelity’s Jurrien Timmer predicts Bitcoin (BTC) is about to surge to new all-time highs. He bases this on several factors.
A Perfect Storm for Bitcoin?
Timmer, a global macro director at Fidelity, points to a strengthening relationship between Bitcoin and the global money supply. With both liquidity improving and the stock market hitting new highs, he believes Bitcoin’s recent upward movement is no surprise. He suggests that this positive momentum could easily push Bitcoin to new record prices.
The Weakening Dollar and Bitcoin’s Appeal
Timmer also highlights the weakening US dollar as a potential driver. He suggests that investors might be turning to gold and Bitcoin as a hedge against currency devaluation. He even speculates that a shift away from the US dollar’s dominance might be underway, with other currencies and “hard money” like gold and Bitcoin taking a larger role.
Bitcoin vs. Gold: Sharpe Ratio Favors Bitcoin
Finally, Timmer notes that the Sharpe ratio—a measure of risk-adjusted return—now favors Bitcoin over gold. This means investors might see a better return on investment from Bitcoin despite its volatility. He believes this shift in the Sharpe ratio, coupled with increasing risk appetite, indicates Bitcoin’s resurgence.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in any cryptocurrency.
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