According to Odaily Planet Daily, Jurrien Timmer, the Global Macro Director at Fidelity Investments, analyzes the dynamic relationship between Bitcoin and gold, citing data from FMR Co and Bloomberg, pointing out the trend of the changes in their Sharpe ratios.
Timmer stated that there is a negative correlation between gold and Bitcoin, with the two alternating in leading Sharpe ratios recently. The next leading moment may be for Bitcoin, as its current Sharpe ratio is -0.40, while gold's is 1.33.
The data shared by Timmer shows that the return for gold is $22.51, while for Bitcoin it is $13.22, where the return for gold is magnified by 4 times to reflect its lower volatility, while Bitcoin's return remains unadjusted at 1 times.
