Fidelity makes ‘flattering’ comparison to Bitcoin


Jurrien Timmer, global head of macro at Fidelity, wrote in an X post on Wednesday: Bitcoin It is a means of currency preservation and inflation hedging similar to “index gold”.

The analyst believes that both Bitcoin and gold currently have different but attractive risk/reward ratios, and that the two may be players on the “same team” in terms of investment thesis.

Gold and Bitcoin: A historical review

like timo Already indicatedBitcoin has started rising again this year, following “the pattern of previous boom and bust cycles.”

The asset regained $35,000 on Wednesday, with market participants excited about the potential approval of a Bitcoin ETF spot within the next two months. It is said that as investors lose confidence in traditional financial methods, the price of gold has also risen, becoming a reason for investors to “move to quality assets”, thus pushing its price to the same level as gold.

Timmer explained:

Historically, in structural regimes of high inflation, negative real interest rates, and/or excessive money supply growth, gold has tended to shine and gain market share relative to GDP.

Investors often compare Bitcoin to gold because of its strong monetary properties, including credible scarcity compared to fiat currencies. Some, such as Michael Saylor, believe Bitcoin is a better alternative due to its digital advantages and early stage in the adoption cycle.

Although Bitcoin is still much more volatile than gold today, Timmer noted that this works in Bitcoin’s favor during bull markets. When comparing the risk-return of BTC to other asset classes since 2020, he said that the digital currency is “in a different universe.”

He said:

Yes, Bitcoin is down 54% from its two-year high, but it’s also up 84% from its lows. Government bonds can’t match the risk-reward calculation, and neither can many other asset classes, at least for now.

Fidelity Bullish on Bitcoin

Fidelity has run a digital assets division for years, advocating for cryptocurrencies as an investable asset class, providing custody and trading services for Bitcoin and Ethereum.

The asset management firm is actively working with regulators on a spot application for a Bitcoin ETF, an investment product expected to attract billions of dollars of institutional capital into Bitcoin. BlackRock is currently fighting with Fidliety for SEC approval, which analysts believe could be completed as early as January.

follow us FACEBOOK | telegraph | Twitter


Source link

Related Posts

NEAR and Polygon collaborate on zero-knowledge proof innovation

[ad_1] The NEAR Foundation has partnered with Polygon Labs to develop zkWASM, a cutting-edge zero-knowledge solution that enhances the interoperability and security of WASM chains. The NEAR…

Amazon, Olympus challenges OpenAI, Microsoft’s AI dominance

[ad_1] Amazon, Olympus challenges OpenAI, Microsoft’s AI dominance AmazonThe world’s largest online retail and technology provider, through its web services arm AWS (Amazon Web Services), recently revealed…

Financial giant Fidelity responds to 9 common misconceptions and criticisms about Bitcoin

[ad_1] Financial services giant Fidelity has addressed nine common criticisms and misconceptions about Bitcoin, highlighting that some of them are “unfounded or unlikely to be…

Third-quarter profits lower, revenue higher, according to

[ad_1] ©Reuters. Lyft reports: Third-quarter profits down, revenue up – Lyft (NASDAQ: ) on Wednesday reported third-quarter results that missed analysts’ expectations and revenue that beat…

CEHV partners say future uncertain during Genesis shutdown

[ad_1] Many analysts are speculating on the outcome of the spot Bitcoin ETF race, and CEHV partner Adam Cochran shared his views in a Nov. 8 X…

Second-quarter profits lower, revenue higher, according to

[ad_1] ©Reuters. Take-Two reports: Second-quarter profits fall, revenue rises – Take-Two (NASDAQ: ) on Wednesday reported second-quarter results that missed analysts’ expectations and revenue that beat…

Trả lời

Email của bạn sẽ không được hiển thị công khai. Các trường bắt buộc được đánh dấu *