Fidelity's Timmer Sees Bitcoin as Key Diversifier Beyond Stocks and Bonds

Fidelity Investments' director of global macro, Jurrien Timmer, has named Bitcoin as one of the key diversifiers beyond traditional stock-and-bond portfolios. According to Timmer, Bitcoin sits close to the middle in a chart showing its five-year correlation with the S&P 500 and long-term U.S. Treasuries, with a correlation of only about 30% with the S&P 500 and approximately zero with long-term Treasuries. Timmer views Bitcoin as especially interesting due to its recent recovery, noting that its move above the $80,000 area was a decisive breakout that confirmed a double-bottom formation with a target of approximately $100,000. At the time of writing, Bitcoin is trading at approximately $85,984, up 2.2% over the previous 24 hours.

Timmer also observed that Bitcoin priced in gold is showing a lot of strength, and that the cryptocurrency may be entering another four-year bull-market cycle after spending roughly a year holding around the $60,000 support zone. Bitcoin's prolonged downturns have historically lasted around a year, and the fact that it repeatedly found support around $60,000 is an indication that the latest Bitcoin winter might be finally over, according to Timmer.