In 2024, Bitcoin reached significant heights, surpassing the $100,000 mark, attracting market attention. Gold also performed impressively despite its negative correlation.
Bitcoin and Gold: Market Leaders
Jurrien Timmer, Fidelity's director of global macro, highlighted Bitcoin's notable performance as it crossed the $100,000 mark. Gold also excelled, standing out among negatively correlated assets.
Market Dynamics and Forecasts
Timmer noted that markets ended the year as they started—with Bitcoin and gold at the forefront, along with leading U.S. stocks. However, whether this dynamic will shift in 2025 remains to be seen. "We will all be spending many hours on this in the coming months," he added.
Role of Money Supply in Growth
The growth of money supply is a key factor for Bitcoin and gold's advancement. "Bitcoin at $100k can be high or low, but a combined market value of $20 trillion is a number rooted in monetary fundamentals," Timmer said.
Despite substantial growth in 2024, Bitcoin faced challenges regaining momentum due to the Federal Reserve's hawkish stance. The market is closely monitoring developments.
