Summary
- A Fidelity Investments executive said he believes gold investors are moving back into Bitcoin (BTC).
- He said that as gold’s appeal weakens and Bitcoin becomes more established, the direction of fund flows is changing, and that Bitcoin is forming support while moving sideways.
- Timmer said this trend suggests a reversal in short-term investment funds that moved into gold last year, and that inter-asset fund flows could affect future price volatility.
Forecast Trend Report by Period
A Fidelity Investments executive has analyzed recent fund flows, saying gold investors are shifting back into Bitcoin (BTC). The comment suggests investment demand is changing between crypto assets and gold.
Jurrien Timmer, Fidelity Investments’ director of global macro, wrote on X (formerly Twitter) on the 3rd (local time) that “investors who abandoned Bitcoin late last year are returning to crypto assets.”
He explained, “Last year, investors pulled money out of crypto assets and moved into gold, but that flow is now reversing,” adding that “as gold’s appeal fades and Bitcoin becomes more established, the direction of fund flows is changing.”
He went on to say, “Bitcoin is currently forming support while trading sideways and appears to be setting up for the next leg higher.” By contrast, he added, “gold has recently been relatively sluggish.”
Timmer analyzed that “this trend points to a reversal in the direction of short-term investment funds that moved into gold last year.” The market sees inter-asset fund flows as a factor that could affect price volatility going forward.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
