Fidelity: Bitcoin Could Reach This ‘Important Milestone’

Jurien Timmer, director of global macro at Fidelity Investments, has opined that Bitcoin potentially decoupling from equities would represent a major milestone for the leading cryptocurrency.

According to Timmer, the rise in the global money supply has not gone unnoticed by either gold or its digital rival. The prominent analyst added that the global M2, which refers to the global supply of money across the world’s leading economies, currently stands at $111.9 trillion. This essentially means that central banks are printing more money.

Last week, the price of Bitcoin reached its current peak of $112,000, surpassing the previous all-time high that was recorded in January. And “Bitcoin, which lagged gold for a while as its Dr Jekyll split-personality took over by following equity prices lower, is now making new highs as well,” Timmer said.

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Timmer, who is seemingly a fan of conceptual metaphors, claims that both store-of-value players (Bitcoin and gold) are now on the field together.

It is also worth noting that their Sharpe Ratios, which measure risk-adjusted returns, have now converged.

However, the hey challenge for Bitcoin is to actually stop trading in tandem with US stocks.

“Whether Bitcoin can hold up here as the stock market rolls over remains to be seen of course. If Bitcoin can decouple from equities, it would be an important milestone,” Timmer said.

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