Bitcoin Eyes Break from Stocks as Fidelity Analyst Highlights Decoupling Trend

Jurien Timmer, Director of Global Macro at Fidelity Investments, believes Bitcoin may be approaching a major milestone: breaking free from its correlation with U.S. equities. According to Timmer, such a decoupling would be a pivotal moment for the cryptocurrency, signaling its maturity as a store of value.

Timmer points out that global M2 money supply—representing the combined money supply of major economies—has soared to $111.9 trillion, indicating continued aggressive monetary expansion by central banks. This increase has not gone unnoticed by store-of-value assets like gold and Bitcoin. Last week, Bitcoin surged to a new high of $112,000, surpassing its previous all-time high set in January. While Bitcoin had previously mirrored equities during downturns, it is now reclaiming momentum, aligning more closely with gold’s trajectory.

Highlighting their evolving roles, Timmer remarked that both gold and Bitcoin are now "on the field together." He also noted that their Sharpe Ratios, which assess risk-adjusted returns, have recently converged—another indicator of Bitcoin’s growing legitimacy as a long-term investment.

Still, Timmer emphasized that the real test for Bitcoin lies ahead. “Whether Bitcoin can hold up here as the stock market rolls over remains to be seen. If Bitcoin can decouple from equities, it would be an important milestone,” he stated.

As Bitcoin continues to challenge traditional financial norms, investors are watching closely to see if it can maintain this momentum independently of stock market trends. If successful, this shift could redefine Bitcoin's role in global financial markets.