Fidelity’s Timmer Reveals Why Bitcoin Bulls Should Be Cautious

In recent post on social networksFidelity’s Jurrien Timmer suggested that both gold and bitcoin may be overvalued.

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

This is near the peak value of the yellow metal in 1980 relative to M2

However, Timmer did not specifically state that these assets had 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 argues that Bitcoin and gold are essentially a two-trend play: US fiscal dominance and a challenge to dollar dominance.

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