Bitcoin Holds Up Better Than Gold in Selloff
Fidelity's Jurrien Timmer says he still prefers Bitcoin to gold as both assets fall alongside equities in a broader risk-off move.
Updated on Nov. 7, 2026 in Employment
Live Poll
Do you think now is a good time to invest in Bitcoin or gold?
Bitcoin and gold are both under selling pressure amid a broader risk-off shift in financial markets. Fidelity Director of Global Macro Jurrien Timmer said in an X post he prefers Bitcoin to gold for the time being, citing Bitcoin's relative price holding up despite the selloff.
Why it matters
Bitcoin and gold have become more correlated to equities in recent weeks, with both assets running 60-70% correlated to the S&P 500, which weakens their role as diversifiers during market stress. Investors are watching whether relative strength in Bitcoin signals a new cycle.
Bitcoin traded at $75,904, down 0.08% over 24 hours, while Bitcoin and gold each show a 60-70% correlation to the S&P 500. Whether the correlation pattern persists through the coming inflation reports is not yet known.
The players
Jurrien Timmer
Jurrien Timmer is Fidelity's Director of Global Macro, known for his analysis of market cycles and macroeconomic trends.
The details
Timmer made the comments in an X post, pointing to Bitcoin's relative price performance even as both assets sold off. The unexpected drop in the unemployment rate to 4.1% pushed Fed funds futures to price a more than 77% chance of a quarter-point cut at the Dec. 9 meeting.
Timeline
Mid-October 2024: Timmer indicated Bitcoin's new 4-year bull market could be underway.
Early Saturday: Bitcoin traded at $75,904 amid the jobs report reaction.
Next week: CPI and PPI inflation reports expected to weigh heavily on the Fed's decision.
Dec. 9: Next Federal Reserve policy meeting, with a rate cut priced in by futures markets.
Market Dynamics
Timmer's view builds on his earlier suggestion that Bitcoin's four-year cycle could be entering a new bull phase. The current test is whether Bitcoin's relative strength during a broad risk-off move holds as inflation data and Fed policy shift.
Investors holding Bitcoin or gold as diversifiers should note that both now move closely with equities, which reduces their protective value during broad selloffs. Portfolio allocations may need review as the Fed's December decision approaches.
The takeaway
Relative price strength can diverge from a broad selloff, but rising correlation to equities means both Bitcoin and gold may offer less protection than they once did. Watching inflation data before the December Fed meeting can clarify which narrative is holding.
What happens next
Next week's CPI and PPI inflation reports are expected to weigh heavily on the Federal Reserve's December 9 policy decision.
Further reading
Track how labor data shapes rate expectations in our Employment coverage.
Live Poll
Do you think now is a good time to invest in Bitcoin or gold?
