Fidelity Investments’ Global Macro Director Predicts Explosive Breakout for Bitcoin

Fidelity Investments’ global macro director Jurrien Timmer believes that Bitcoin (BTC) is on the verge of a significant breakout. In a recent thread on the social media platform X, Timmer shared his insights on why he thinks Bitcoin is poised for new all-time highs.

Historical Relationship with Global Money Supply

According to Timmer, there is a historical relationship between Bitcoin and the global money supply metric that suggests the top digital asset could soon reach new highs. He points out that with liquidity improving in the global money supply and the stock market hitting new highs, Bitcoin’s upward momentum is no surprise.

Timmer also mentions that a weakening US dollar may drive more investors towards gold and potentially Bitcoin as a hedge against currency debasement. He raises the question of whether a new world order is emerging where the US dollar loses some of its supremacy and is replaced by a mix of other fiat currencies and hard money like gold and Bitcoin.

Sharpe Ratio Favors Bitcoin

Another point Timmer makes is that the Sharpe ratio, a measure of risk-adjusted return, is now starting to favor Bitcoin over gold as a better investment option. This ratio, created by Nobel laureate William Sharpe, indicates the potential return an investor could receive for enduring the volatility of a risky asset.

Currently, Bitcoin is trading at $107,792, showing a 1.9% decrease in the last 24 hours. Timmer’s analysis suggests that Bitcoin could see significant growth in the near future, especially as risk appetites rise and investors seek higher returns.

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