Chris Kuiper, director of research at Fidelity's digital assets unit, shared insights on market forces affecting Bitcoin and gold.
Comparison of Bitcoin and Gold Dynamics
Kuiper noted that both Bitcoin and gold are driven by similar market forces—liquidity and inflation expectations. He highlighted that Bitcoin barely managed to reach new highs in gold terms in December.
Historical Context and Comparison
From 2019 to 2020, gold surged nearly 70%, followed by Bitcoin's rise of more than 100%. This was when gold peaked, but Kuiper is not certain if this scenario will replay in the future.
Expert Perspectives and Conclusions
Kuiper views gold as a more established market for major players, while Bitcoin is more retail-focused, explaining its underperformance. Jurrien Timmer from Fidelity recently stated that gold and Bitcoin were actually on the same team.
Kuiper emphasizes that despite differences in positioning, market forces impact both gold and Bitcoin similarly.
