Source: Cointelegraph.com NewsKey takeaways:<\/p>\n
Bitcoin\u2019s Sharpe ratio converges with gold\u2019s, indicating similar risk-adjusted returns, supporting its store-of-value role.
\nGold outperformed Bitcoin in Q1 2025 with a 30.33% price gain versus Bitcoin\u2019s 3.84%, driven by economic uncertainty.
\nBitcoin ETF inflows are recovering, and analysts predict BTC could reach $110,000\u2013$444,000 in 2025.<\/p>\n
Bitcoin\u2019s (BTC) price is holding above $100,000, leading Fidelity Director of Global Macro, Jurrien Timmer to say the crypto asset could reclaim its position as a leading store-of-value contender.\u00a0 Source: Cointelegraph.com NewsKey takeaways: Bitcoin\u2019s Sharpe ratio converges with gold\u2019s, indicating similar risk-adjusted returns, supporting its store-of-value role. Gold outperformed Bitcoin in Q1 2025 with a 30.33% price gain versus… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129580"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129580"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129580\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129580"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nTimmer\u2019s recent analysis highlights a convergence in the Sharpe ratios of Bitcoin and gold, suggesting that the two assets are increasingly comparable in risk-adjusted returns. The Sharpe ratio measures the rate of return an investment provides for the risk taken, by comparing its performance to a risk-free benchmark relative to its volatility.
\nThe chart below, tracking weekly data between 2018 and May 2025, shows Bitcoin\u2019s returns (1x) catching up to gold\u2019s (4x), with gold at $22.48 and Bitcoin at $15.95 in relative performance terms.\u00a0
\nGold vs Bitcoin Sharpe ratio. Source: X.comFrom an allocation standpoint, Timmer recommended a 4:1 gold-to-Bitcoin ratio for a store-of-value hedge, highlighting an intriguing observation. Timmer said,\u00a0
\n\u201cI continue to be fascinated by the fact that the most negatively correlated asset to Bitcoin is gold. For two players on the same store-of-value team, it\u2019s not what I would expect to see. Bitcoin\u2019s risk-reward ratio has continued to impress. There is no other asset quite like it!\u201d
\nWhile Bitcoin\u2019s SoV credential improves above $100,000, Ecoinometrics, a Bitcoin-focused macroeconomic\u00a0newsletter, pointed out that it was not smooth sailing in Q1 2025.\u00a0
\nIn 2024, Bitcoin spot exchange-traded traded-funds (ETFs) saw a staggering $35 billion net inflows, purchasing 500,000 BTC and driving a 120% return. However, 2025 started on a different note. The first four months saw Bitcoin ETF flows drop to less than a third compared to 2024, while gold ETFs attracted more capital.
\nThe newsletter noted that this shift could be attributed to Q1 uncertainty surrounding Federal Reserve policy, trade policy, and the US economy. Ecoinometrics stated,
\n\u201cBetween two hard assets, gold and Bitcoin, it\u2019s easy to see why capital went to the one seen as a haven.\u201d\u00a0
\nBitcoin vs gold ETF netflows comparison. Source: X.comGold, with a 30.33% price gain in 2025 compared to Bitcoin\u2019s 3.84%, benefited from its stability during economic unease. Additionally, the analysis added that Bitcoin performed better as a \u201chigh-beta growth asset,\u201d thriving in rising liquidity and fiat debasement environments.\u00a0
\nRecent developments signal a shift: US trade policy clarity, a softer Federal Reserve stance, and easing financial conditions have spurred steady inflows into Bitcoin ETFs.
\nRelated:\u00a0Bitcoin bull flag and standard profit taking hint at eventual rally to new BTC price highs
\nBitcoin is on track for new highs in 2025
\nA higher Sharpe ratio is a positive metric for Bitcoin, significantly increasing the probability of reaching new all-time highs above $110,000 in May. According to Bitcoin Suisse, a crypto custody firm, BTC\u2019s high Sharpe ratio has allowed the asset to thrive in risk-on and risk-off environments since the US presidential election.\u00a0
\nBitcoin price performance in risk-on, risk-off. Source: Bitcoin SuisseWith more than 88% of its supply in profit, BTC currently behaves as a high-conviction bet, where the likelihood of an \u201cacceleration phase\u201d moving forward. Bitcoin Suisse head of research Dominic Weibei said,\u00a0
\n\u201cIn this environment, Bitcoin has emerged as the Swiss army knife asset. Whether equities rally or bonds crumble, BTC trades on its supply-demand fundamentals, delivering a win-win profile that traditional assets simply can’t offer.\u201d
\nSimilarly, Cointelegraph reported that Bitcoin has a “decent chance” of reaching $250,000 or more in 2025, driven by its interplay with gold, according to a gold-based forecast. The report uses a scenario-based framework rooted in its gold model to project Bitcoin\u2019s potential revaluation as a non-sovereign hard asset.\u00a0
\nIf Bitcoin\u2019s network value, measured in gold, follows a power curve, and gold maintains its current value, analysts suggest it could hit $444,000 in 2025. However, a more conservative estimate by Bitcoin analyst Apsk32 points to a “reasonable” target of $220,000 for the year.\u00a0
\nRelated:\u00a0Altcoins are on the verge of \u2018most powerful rally\u2019 since 2017 \u2014 Analyst
\nThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"