Jurrien Timmer, the global macro director at Fidelity, a prominent investment firm based in Boston, suggests that Bitcoin deserves its place among the top contenders for investment returns, alongside gold and international stocks.
In contrast, bonds are languishing at the bottom of the investment spectrum due to US fiscal policies that favor domestic assets.
Timmer points out that the current surge in artificial intelligence (AI) is propelling large-cap companies in the US.
Bitcoin’s unique characteristic of scarcity positions it well to thrive as fiat currencies weaken.
The baton remains unpassed
Back in May, Timmer forecasted that gold might eventually hand over its leading position to Bitcoin during the latter half of this year.
However, this transition has yet to materialize as gold continues to outperform its digital counterpart significantly.
Timmer noted in late August that Bitcoin and gold were “in equilibrium,” especially after Bitcoin hit a new all-time high. Yet shortly thereafter, Bitcoin’s momentum faltered while gold maintained a strong performance throughout September.
This morning saw gold achieving another record peak above $3,650 as investors increasingly flock towards it ahead of anticipated interest rate cuts by the Federal Reserve.
Timmer recently speculated on a potential revival of quantitative easing (QE) by the Fed which could positively impact both Bitcoin (BTC) and gold prices.
A peak cycle?
The ongoing discussion regarding whether Bitcoin’s halving-driven four-year cycles remain relevant persists amidst increasing institutional involvement. Nevertheless, Timmer maintains that Bitcoin continues to adhere to these cycles.
In July he remarked that both Bitcoin and gold are still “in their middle innings” within what he describes as hard money trading dynamics—highlighting factors such as global money supply levels and dollar strength.