Fidelity: Bitcoin Could Surpass Gold's Dominance at Any Time

According to a report by Jinse Finance, Jurrien Timmer, the Global Macro Director at Fidelity Investments, analyzed the dynamics between Bitcoin and gold, pointing out that Bitcoin could surpass gold's dominance at any time. Based on changes in the Sharpe ratio, which measures the risk-adjusted returns of these two assets, gold and Bitcoin are negatively correlated. Since Bitcoin's Sharpe ratio is -0.40, while gold's is 1.33, this suggests that Bitcoin may lead the market next, and we may witness a handover from gold to Bitcoin. Jurrien Timmer advises investors to start with a portfolio of four parts gold to one part Bitcoin, as gold's volatility is only a quarter of Bitcoin's, despite their similar Sharpe ratios.