Fidelity's Timmer: Bitcoin a Key Diversifier Beyond Stocks and Bonds

Jurrien Timmer, director of global macro at Fidelity Investments, believes that Bitcoin is a key diversifier beyond traditional stock-and-bond portfolios. According to his chart, which shows the cryptocurrency's five-year correlation with the S&P 500 and long-term U.S. Treasuries, Bitcoin sits close to the middle.

Timmer places Bitcoin alongside commodities, gold, cash, and leveraged loans as diversifiers against both asset classes. He notes that Bitcoin's correlation with the S&P 500 is around 30%, while its correlation with long-term Treasuries is approximately zero.

Bitcoin looks especially interesting to Timmer right now, particularly after clearing the $80,000 area. He had predicted a decisive breakout would confirm a double-bottom formation with a target of approximately $100,000, and that region has been confirmed.

Timmer also comments on Bitcoin's strength when measured against gold, noting 'Bitcoin priced in gold is showing a lot of strength.'