possible passing of the baton from gold to BTC
The post possible passing of the baton from gold to BTC appeared on BitcoinEthereumNews.com. According to the global macro director of Fidelity Investments, Jurrien Timmer, there might soon be a handover from gold to BTC. He stated it a few days ago on his personal X profile, with a tweet dedicated specifically to the relationship between the trend of the gold price and that of Bitcoin over the last seven years. BTC vs. gold: Fidelity’s analysis In the chart published by the director of Fidelity, there are two curves that represent the performance of BTC over time in orange, and that of gold multiplied by 4 times in yellow. In fact, the average volatility of gold is much lower compared to that of Bitcoin, so in order to discern some type of connection between the two curves, it is necessary to expand the performance of gold by four times. The chart also shows two other curves at the bottom, namely the Sharpe Ratio of gold, in purple, and that of Bitcoin, in blue. Timmer comments saying that ironically gold and bitcoin are inversely correlated with each other, given that lately the two assets have alternated, as is evident from the comparison of the two Sharpe Ratio indices. Then, however, he adds: “Apparently, it might be bitcoin’s turn to take the lead, given that its Sharpe ratio is -0.40 while that of gold is 1.33. So maybe it’s time for a handover from gold to Bitcoin”. The timing Timmer does not specify the timing of this hypothetical handover, but by analyzing the comparison between the two Sharpe Ratios, something can be deduced about it. First of all, it should be emphasized that from 2018 until today, there have already been about ten handovers of this type. “`html For example, in November, after the electoral victory of Trump, the Sharpe Ratio of Bitcoin had soared above…
The post possible passing of the baton from gold to BTC appeared on BitcoinEthereumNews.com.
According to the global macro director of Fidelity Investments, Jurrien Timmer, there might soon be a handover from gold to BTC. He stated it a few days ago on his personal X profile, with a tweet dedicated specifically to the relationship between the trend of the gold price and that of Bitcoin over the last seven years. BTC vs. gold: Fidelity’s analysis In the chart published by the director of Fidelity, there are two curves that represent the performance of BTC over time in orange, and that of gold multiplied by 4 times in yellow. In fact, the average volatility of gold is much lower compared to that of Bitcoin, so in order to discern some type of connection between the two curves, it is necessary to expand the performance of gold by four times. The chart also shows two other curves at the bottom, namely the Sharpe Ratio of gold, in purple, and that of Bitcoin, in blue. Timmer comments saying that ironically gold and bitcoin are inversely correlated with each other, given that lately the two assets have alternated, as is evident from the comparison of the two Sharpe Ratio indices. Then, however, he adds: “Apparently, it might be bitcoin’s turn to take the lead, given that its Sharpe ratio is -0.40 while that of gold is 1.33. So maybe it’s time for a handover from gold to Bitcoin”. The timing Timmer does not specify the timing of this hypothetical handover, but by analyzing the comparison between the two Sharpe Ratios, something can be deduced about it. First of all, it should be emphasized that from 2018 until today, there have already been about ten handovers of this type. “`html For example, in November, after the electoral victory of Trump, the Sharpe Ratio of Bitcoin had soared above…
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