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 barely budged compared to the double top that was recorded during the previous bull market.
Kuiper then added that gold surged nearly 70% over the period from 2019 to 2020. After the yellow metal eventually peaked, Bitcoin rallied by more than 100%.
The Fidelity executive does not believe that the same scenario will necessarily play out this time around. “We will see if this time is similar or different,” he added.
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Kuiper views gold as a more established market for major players where the market forces get sniffed out first. Bitcoin is more retail-focused, and it tends to experience “final euphoric bull runs.”
This is supposed to explain why Bitcoin is severely underperforming gold as of now.
As reported by U.Today, Jurrien Timmer, director of global macro at Fidelity, recently stated that gold and Bitcoin were actually on the same team.
