Fidelity Investments global macro director Jurrien Timmer has identified Bitcoin as one of the key assets that can provide diversification beyond traditional stock-and-bond portfolios. In a market commentary dated October 2, Timmer placed Bitcoin alongside commodities, gold, cash, absolute return strategies, and leveraged loans as a diversifier against both global equities and bonds.
Timmer shared a chart showing Bitcoin's five-year correlation with the S&P 500 at roughly 30% and its correlation with long-term U.S. Treasuries at approximately zero. “Beyond the 60 (global equities) and the 20 (bonds), the main diversifiers (against both asset classes) are commodities, gold, Bitcoin, cash, alts (equity L/S, managed futures, absolute return) and leveraged loans,” he wrote.
The Fidelity strategist said he continues to like both gold and Bitcoin, “but especially Bitcoin looks interesting right now.” He highlighted Bitcoin's move above the $80,000 level. On September 25, Timmer had said a decisive breakout would confirm a double-bottom formation with a target of approximately $100,000. Bitcoin clearing that region was the confirmation he was watching.
At the time of writing, Bitcoin was trading at approximately $85,984, up 2.2% over the previous 24 hours. Timmer also noted strength in Bitcoin when priced against gold. On September 19, he argued that Bitcoin may be entering another four-year bull-market cycle after spending roughly a year holding around the $60,000 support zone. He added that prolonged Bitcoin downturns have historically lasted around a year, and repeated support near $60,000 may indicate the latest Bitcoin winter is over.
