Chris Kuiper’s Insights on Bitcoin and Gold

Chris Kuiper, director of research at Fidelity’s digital assets unit, has opined that both Bitcoin and gold are driven by the same market forces: liquidity and inflation expectations.

He noted that Bitcoin had “barely managed” to make a new high in gold terms in December. The leading cryptocurrency showed little change compared to the double top recorded during the previous bull market.

Kuiper added that gold surged nearly 70% from 2019 to 2020. After gold peaked, Bitcoin rallied by over 100%.

However, the Fidelity executive does not believe that the same scenario will necessarily play out this time. “We will see if this time is similar or different,” he remarked.

Kuiper views gold as a more established market for major players where market forces are detected first. In contrast, Bitcoin is more retail-focused and tends to experience “final euphoric bull runs.”

This perspective helps explain why Bitcoin is currently underperforming compared to gold.

As reported by U.Today, Jurrien Timmer, director of global macro at Fidelity, recently indicated that gold and Bitcoin are actually on the same team.