Fidelity Global Macro Director: Bitcoin could surpass gold's dominance at any time

Odaily News Jurrien Timmer, global macro director at Fidelity Investments, recently published a detailed analysis of the dynamic relationship between Bitcoin and gold. Citing data from Fidelity Management and Research Company (FMR Co) and Bloomberg, Timmer analyzed the changing trends of the Sharpe ratio (a measure of risk-adjusted returns) of the two assets and pointed out that their relative performance may be at a turning point.
Timmer said: "Ironically, there is a negative correlation between gold and Bitcoin. As can be seen in the figure below, the Sharpe ratios of these two assets have been alternating recently... It looks like Bitcoin may be leading next, as its Sharpe ratio is currently -0.40, while gold is 1.33. Therefore, we may be witnessing a baton handover from gold to Bitcoin."
The chart shared by Timmer shows that gold’s recent return is $22.51, while Bitcoin’s is $13.22, with gold’s return magnified by 4x to reflect its lower volatility, while Bitcoin’s return remains unadjusted at 1x.