Jurrien Timmer, director of global macro at Fidelity, has opined that Bitcoin could "perhaps" become part of "a new world order," in which the U.S. dollar partially loses its supremacy.
"If the dollar is in a sustained downtrend, it could provide a major tailwind for non-US equities and commodities," he said.
Timmer pointed to the fact that the leading cryptocurrency had shown "palpable" weakness.
The greenback suffered its worst half-year performance since the early 1970s, dropping by 10% against a basket of other major fiat currencies. Such a severe plunge was last recorded back in 1973, which was the year President Richard Nixon ditched the gold standard.
The euro has surged by 14%, routinely hitting multi-year peaks. The British pound also recently reached a three-year peak after recording a double-digit gain.
The massive decline has been caused mainly by global trade tensions, as well as concerns about the growing deficit. The U.S. Federal Reserve is also expected to cut interest rates this year, which will undercut the greenback's yield advantage.
Gold prices tend to move inversely to real interest rates. However, as noted by Timmer, this correlation broke down about three years ago. "Maybe this regime change was signaled three years ago when gold stopped trading in lockstep with real rates," he said.
The yellow metal has thus far outperformed Bitcoin in 2025. However, as reported by U.Today, Timmer predicted that gold could pass the baton to its digital competitor in 2025.
Bitcoin reached an intraday high of $110,322 earlier on Thursday. The cryptocurrency is less than 2% away from reclaiming its previous all-time high of $112,000 reached on the Bitstamp exchange on May 22.
Vladislav Sopov
U.Today Editorial Team