According to recent analysis from Jurrien Timmer, director of global macro at Fidelity Investments, exchange-traded product (ETPs) flows clearly show that investors who abandoned Bitcoin in late 2025 are returning to the cryptocurrency. 

Market data indicated a massive change in sentiment when Bitcoin peaked back in October. Investors pulled out of digital assets and jumped on the "gold bandwagon." However, that trend is now flipping.

"Now that gold has lost its mojo while Bitcoin is finding its footing, the flows have reversed," Timmer noted, pointing to the recent divergence in the two assets' momentum. "To me, this is a good way to think about why gold has started acting like Bitcoin and Bitcoin has started acting like gold."

"Mild winter"

In October, Bitcoin reached dizzying heights of over $124,000 late last year. Since then, the cryptocurrency has experienced a sharp drawdown, eventually bottoming out near the $60,000 mark.

For Timmer, this minor drawdown is a "mild winter." The asset is now consolidating and finding strong support, and it is seemingly preparing for another move. 

"Bitcoin continues to hold on to the $65-$70k range as it is trying to form a base following its mild winter from $126k to $60k," he noted. 

The Fidelity exec has added that the current level is supported by the technicals (previous highs) as well as the Bitcoin/gold ratio and the deviation of Bitcoin from its power law curve," Timmer said.

Gold's surprising weakness 

After a blowout year, gold has been struggling, which is a rather surprising development. Typically, precious metals thrive during periods of global uncertainty, but gold has recently failed to capitalize on international tensions.

"Gold has been surprisingly weak lately and has not acted in line with what one might expect during a geopolitical shock," Timmer observed.

According to Timmer, this underperformance is driven by two main factors. First, there is a "sentiment reversal among the fast money crowd" who had initially rushed into gold when it captured Bitcoin's momentum last year. Second, geopolitical pressures have forced certain nations to liquidate their reserves. 

That said, Timmer maintains a positive long-term outlook for the precious metal. "For me, gold is worth accumulating at current levels since its secular trend remains higher," he concluded.