🗣️Fidelity: Bitcoin Might Overtake Gold’s Dominance Amid Sharpe Ratio Shift
📊 Market Insight:
Jurrien Timmer, Director of Global Macro at Fidelity Investments, believes a turning point may be coming in the battle between Bitcoin and gold — based on shifting Sharpe Ratios, a key metric for risk-adjusted returns.
💬 Key Quote:
“Gold and Bitcoin have shown inverse correlation, often trading places in terms of risk-return performance,” Timmer noted, citing data from Fidelity & Bloomberg.
🟡 Gold vs. BTC:
Gold recently posted a Sharpe Ratio of 1.33
Bitcoin’s Sharpe Ratio dropped to -0.40
Yet, in a 1:1 price chart, BTC has outperformed. Even when scaled (Gold 4x due to lower volatility), the gap remains narrow.
🔁 The Shift:
Timmer suggests we may now see a handoff of dominance from gold to Bitcoin as market dynamics evolve.
💬 Market Mood:
Digital gold’s turn to shine again?
“Sharpe Ratio? Sounds like Bitcoin’s about to cut gold’s lead.”
“Gold: ‘I had a good run.’ BTC: ‘Hold my hash rate.’”
👉 Will BTC become the ultimate store of value this cycle?
👉 Tap follow for daily macro alpha & crypto insights!