Bitcoin and Gold: Timmer’s Perspective

Jurrien Timmer, the director of global macro at Fidelity, once again draws parallels between Bitcoin and gold, asserting that these two assets are on the same team.

Timmer compares the responses of both gold and its digital counterpart to monetary expansion (M2 growth).

He highlights that gold has shown a linear correlation with M2 over the past decades, while Bitcoin has displayed a power curve, indicating that the cryptocurrency has undergone exponential growth amid considerable liquidity expansion.

This comparison suggests that while both assets are aligned, Bitcoin functions as a high-reward player. Timmer remarked, “It’s interesting that there’s a linear correlation between M2 and gold, but a power curve between M2 and Bitcoin. Different players on the same team.”

Previously, Timmer described Bitcoin as “exponential gold,” referring to it as an “aspiring player” on the “store of value” roster.

Recently, Bloomberg’s Mike McGlone predicted that gold might continue to outperform Bitcoin in 2025.

Earlier this month, Timmer mentioned that Bitcoin appeared “stuck” at the $100,000 mark. On Friday, Bitcoin approached this level again after the SEC dropped its lawsuit against Coinbase, but it later lost gains following the Bybit hack.

As of now, Bitcoin is trading at $96,683, according to CoinGecko data.