Julian Timmer, director of global macro at Fidelity Investments, said Bitcoin gained traction in 2024, with a spectacular rally that saw the cryptocurrency eventually break through the $100,000 mark.
He also said gold’s stellar performance was “particularly impressive” given that it is the most negatively correlated asset.
Timmer added that the market ended the same way it started last year, with Bitcoin and gold taking the lead, along with leading US stocks. However, it remains to be seen whether this momentum will continue this year. “Whether 2025 will be the year that reverses these polarities is something we will all be spending a lot of time on in the coming months,” he said.
Bitcoin hit a new record high of $108,135 in December. But the stock has since struggled to recover due to the Federal Reserve’s hawkish stance.
In December, Timmer opined that gold and Bitcoin are two players “on the same team.” The combined market value of the two assets reached $20 trillion.
At the same time, he seemed to downplay the significance of the $100,000 milestone, claiming it was “just a quid pro quo.”
He said, “While $100,000 in Bitcoin can be said to be high or low depending on how you look at it, the combined market value of $20 trillion is a number that is rooted in financial fundamentals.”
He pointed out that the increase in money supply will be one of the key factors determining whether Bitcoin and gold will continue to develop.
Timmer also previously noted that Bitcoin’s price is “inextricably tied” to the size and growth of its network. In November, he warned that the growth of crypto networks would slow significantly in 2024.
