Fidelity's Timmer Reveals Why Bitcoin Bulls Should Be Cautious

In a recent social media post, Fidelity’s Jurrien Timmer has implied that both gold and Bitcoin might be getting overvalued.

He has noted that the two assets represent 133% of M2, which represents the entire US money supply that includes cash, deposits, and so on.

This is close to the 1980 peak of the yellow metal’s value relative to M2

That said, Timmer did not explicitly state that these assets have already peaked. However, he believes that bears should be somewhat cautious.

“It’s something to keep in mind after gold’s stratospheric run,” he said.

Two key trends

In a follow-up post, he claims that Bitcoin and gold are essentially a play on two trends: US fiscal dominance and the challenge to dollar dominance.

Countries and investors are looking for non-dollar assets that could serve as viable alternatives.