Fidelity: Bitcoin Could Reach This 'Important Milestone'

Bitcoin's Potential Decoupling from Equities: A Significant Milestone, Experts Weigh In

Jurien Timmer, director of global macro at Fidelity Investments, recently shared his perspective on Bitcoin's potential separation from traditional equity markets—a development that could represent a major turning point for the cryptocurrency.

Timmer highlights how both gold and Bitcoin have responded to the expansion of global money supply. The global M2 money supply, representing currency across major economies, now stands at $111.9 trillion, reflecting significant central bank money printing activity.

Bitcoin recently achieved a new price peak of $112,000, exceeding its previous January high. Timmer observed, "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."

The analyst notes that both Bitcoin and gold—traditional store-of-value assets—are now performing in tandem. Their Sharpe Ratios, measuring risk-adjusted returns, have converged, underscoring their growing similarity as investment vehicles.

The critical test for Bitcoin remains its ability to maintain independence from U.S. stock market movements. Timmer commented, "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."

As cryptocurrency markets mature, Bitcoin's potential separation from traditional financial markets could significantly impact its long-term adoption and recognition as a digital store of value.