According to Odaily Planet Daily, Jurrien Timmer, Global Macro Director of Fidelity Investments, analyzes the dynamic relationship between Bitcoin and gold, citing data from FMR Co and Bloomberg, and points out the trend of changes in their Sharpe ratios.
Timmer states that there is a negative correlation between gold and Bitcoin, and recently their Sharpe ratios have alternated in leading. The next leading moment may belong to Bitcoin, as its Sharpe ratio is currently -0.40, while gold's is 1.33.
The data shared by Timmer shows that the return on gold is $22.51, while Bitcoin's is $13.22. The return on gold is magnified by 4 times to reflect its lower volatility, while the return on Bitcoin is not proportionally adjusted and remains at 1 time.
