Highlighting that gold is a more established market for major players, Fidelity Digital Assets Research Director Kuiper stated that Bitcoin typically experiences “last euphoric bull runs.” He expressed that the main reason for Bitcoin currently showing weaker performance than gold could be this phenomenon. Fidelity’s research director for digital assets, Chris Kuiper, indicated that the fundamental reason behind the correction in Bitcoin’s price is the delayed response it gives to market forces compared to gold. Kuiper emphasized that both Bitcoin and gold are driven by the same fundamental factors, defining these factors as liquidity conditions and inflation expectations. Kuiper noted that Bitcoin struggled to reach a new peak against gold in December and displayed limited room for movement compared to the double top formation seen in the previous bull market period. Kuiper pointed out that Bitcoin was unable to gain strength against gold, attributing this to Bitcoin being largely influenced by retail investors. Kuiper emphasized that the gold market is more established and settled for major players who first price in macroeconomic dynamics, whereas Bitcoin is guided more by individual investors and usually experiences “last euphoric bull runs” as an asset class. Kuiper added that this difference could explain why Bitcoin is currently showing weaker performance than gold. Fidelity’s global macro strategist Jurrien Timmer recently stated that gold and Bitcoin are actually on the same team, noting that the two assets respond similarly to macroeconomic conditions. However, Kuiper, by pointing out that gold rose by approximately 70% in 2019-2020, followed by Bitcoin gaining over 100%, mentioned that it is uncertain whether this cycle will repeat. He stated, “Will we see the same scenario this time, or will a different market structure emerge, time will tell.”