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Jurrien Timmer, Fidelity Investments' director of global macro, has identified a critical silver lining in Bitcoin's recent price action.
A technical pattern shows that the worst of the sell-off may be over as the cryptocurrency remains below the make-it-or-break-it $70,000 level.
Bitcoin's stunning underperformance
Timmer’s latest analysis offers a sobering look at how Bitcoin stacks up against traditional assets using the Sharpe Ratio, which is a metric that is used for evaluating risk-adjusted returns.
According to the Fidelity executive, equities are currently sitting in the middle of the pack with modest 52-week Sharpe Ratios. Gold reigns supreme at the top while Bitcoin remains anchored at the bottom.
"Gold continues to exhibit very resilient behavior, recovering quickly from corrections," Timmer noted. "This is what super-bull markets are made of."
A "hopeful sign"
Still, there is a sign of hope. Bitcoin managed to carve out a "higher low" on Friday, holding strong at the $65,000 support zone.
Crucially, this occurred while more speculative equities were making lower lows. This divergence, according to Timmer, shows underlying strength and seller exhaustion on the crypto side.
"That’s a hopeful sign, especially after reaching the $65k support zone," Timmer explained.
Bitcoin is currently changing hands at around $67,778, up 1.0% over the last 24 hours.
The next bull cycle
Following Bitcoin's peak near $125,000 in October 2025, Timmer predicted that the four-year cycle bull market had ended.
As reported by U.Today, Timmer predicted that Bitcoin's plunge to $60,000 could be the bottom of the correction.
"A decline to 'only' $60k would be relatively shallow for a Bitcoin winter, but as the commodity currency matures, its ups and downs should become less dramatic," he observed.
The Fidelity director views the current market as a necessary period of "backing and filling."
Vladislav Sopov
Dan Burgin