Fidelity’s Timmer: Loose Fiscal and Monetary Mix ‘Clearly Bullish’ for Bitcoin

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Fidelity’s Timmer: Loose Fiscal and Monetary Mix ‘Clearly Bullish’ for Bitcoin

Fidelity’s director of global macro, Jurrien Timmer, said on social media that the current combination of loose fiscal and monetary policy is ‘clearly bullish’ for Bitcoin. His comments follow last week’s U.S. Treasury move to buy back long-term bonds and increase issuance of short-term bills, a strategy that has weakened the dollar and driven gains in both gold and Bitcoin.

Market Signals and Fiscal Dominance

Timmer noted that the market is sensing a ‘precarious moment’ centered on fiscal dominance and the possibility that the Federal Reserve could lose its independence. The Treasury’s buyback program, if expanded significantly, could force the Fed to align with these ‘Operation Twist’ measures, potentially leading to currency debasement. This scenario, he argues, is negative for the dollar, which is currently sitting on its long-term trendline, and positive for hard assets like gold and Bitcoin.

Bitcoin and Gold: Closing the Gap

Both gold and Bitcoin have been laggards in this year’s upward momentum, but Timmer says they are now rapidly narrowing that gap. He added that both assets still have ‘ample room to rise further’ if the policy mix remains accommodative. This view aligns with a growing narrative among macro investors that fiscal expansion and central bank easing could erode fiat currency value, boosting demand for alternative stores of value.