Fidelity Names Bitcoin Top Diversifier Beyond Stocks and Bonds
Fidelity Investments has named Bitcoin as one of the key diversifiers beyond traditional stock-and-bond portfolios, according to Jurrien Timmer, director of global macro at Fidelity.
Timmer placed Bitcoin alongside commodities, gold, cash, and leveraged loans as assets that can provide diversification. In a chart, Timmer showed the five-year correlation between Bitcoin and the S&P 500 and long-term U.S. Treasuries, with Bitcoin sitting close to the middle at around 30% correlation with the S&P 500 and approximately zero correlation with long-term Treasuries.
Timmer recently commented that Bitcoin 'looks especially interesting' as it broke above the $80,000 area and is now trading at around $85,984. He noted that a decisive breakout would confirm a double-bottom formation with a target of approximately $100,000.