Fidelity Prediction: Bitcoin Could Soon Surpass Gold's Dominance
According to Odaily Planet Daily, Jurrien Timmer, Global Macro Director at Fidelity Investments, analyzed the dynamic relationship between Bitcoin and gold, citing data from FMR Co and Bloomberg, and pointed out the trend of changes in the Sharpe ratios of both assets.
Timmer stated that there is a negative correlation between gold and Bitcoin, and recently their Sharpe ratios have alternated in leadership. The next possible leading moment could be for Bitcoin, as its Sharpe ratio is currently -0.40, while gold's is 1.33.
The data shared by Timmer shows that gold returns are $22.51, while Bitcoin returns are $13.22, with gold's return magnified by 4 times to reflect its lower volatility, while Bitcoin's return is not proportionally adjusted, remaining at 1 time.