Fidelity’s global macro director, Jurrien Timmer, warns that Bitcoin could soon overtake gold as the market’s leading safe-haven asset. In his analysis of their Sharpe ratios—a measure of risk-adjusted returns—gold currently posts a 1.33 ratio versus Bitcoin’s –0.40, and the two are negatively correlated. This suggests a potential “baton pass” from gold to Bitcoin. To balance volatility—gold’s is roughly one-quarter that of Bitcoin—Timmer recommends an initial portfolio split of four parts gold for every one part Bitcoin.
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