Jurrien Timmer on the Future of Bitcoin

Jurrien Timmer, director of global macro at Fidelity, has expressed that Bitcoin could “perhaps” become part of “a new world order,” where the U.S. dollar might partially lose its supremacy.

Timmer noted that if the dollar enters a sustained downtrend, it could provide a significant tailwind for non-U.S. equities and commodities. He pointed out the leading cryptocurrency’s “palpable” weakness.

The greenback experienced its first half-year performance drop since the early 1970s, sliding 10% against a basket of major fiat currencies. Such a drastic decline was previously recorded in 1973, the year President Richard Nixon abandoned the gold standard.

The euro has appreciated by 14%, frequently reaching multi-year highs. Additionally, the British pound recently achieved a three-year peak following a double-digit gain.

This substantial drop in the dollar is primarily attributed to global trade tensions and concerns surrounding the growing deficit. The U.S. Federal Reserve is also anticipated to cut interest rates this year, further diminishing the greenback’s yield advantage.

Typically, gold prices react inversely to real interest rates; however, as Timmer highlighted, this correlation has weakened over the past three years. He remarked, “Maybe this regime change was signaled three years ago when gold stopped trading in lockstep with real rates.”

So far in 2025, the yellow metal has outperformed Bitcoin. However, as reported by U.Today, Timmer predicts that gold might soon transfer its momentum to its digital counterpart in 2025.

Bitcoin achieved an intraday high of $110,322 earlier this Thursday. The cryptocurrency is currently less than 2% away from reclaiming its previous all-time high of $112,000, achieved on the Bistamp exchange on May 22.