{"id":20822,"date":"2025-05-19T22:57:18","date_gmt":"2025-05-19T22:57:18","guid":{"rendered":"https:\/\/gold.creditcard\/bitcoin-trading-in-six-figure-territory-shows-btc-is-ready-to-carry-golds-baton-fidelity-exec\/"},"modified":"2025-05-19T22:57:18","modified_gmt":"2025-05-19T22:57:18","slug":"bitcoin-trading-in-six-figure-territory-shows-btc-is-ready-to-carry-golds-baton-fidelity-exec","status":"publish","type":"post","link":"https:\/\/gold.creditcard\/es\/bitcoin-trading-in-six-figure-territory-shows-btc-is-ready-to-carry-golds-baton-fidelity-exec\/","title":{"rendered":"Bitcoin trading in six-figure territory shows BTC is ready to carry gold\u2019s \u2018baton\u2019 \u2014 Fidelity exec"},"content":{"rendered":"

Key takeaways:<\/strong><\/p>\n

Bitcoin\u2019s Sharpe ratio converges with gold\u2019s, indicating similar risk-adjusted returns, supporting its store-of-value role.<\/p>\n

Gold outperformed Bitcoin in Q1 2025 with a 30.33% price gain versus Bitcoin\u2019s 3.84%, driven by economic uncertainty.<\/p>\n

Bitcoin ETF inflows are recovering, and analysts predict BTC could reach $110,000\u2013$444,000 in 2025.<\/p>\n

Bitcoin\u2019s (BTC)<\/a> 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<\/p>\n

Timmer\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.<\/p>\n

The 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<\/p>\n

Gold vs Bitcoin Sharpe ratio. Source: X.com<\/em><\/p>\n

From 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<\/p>\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<\/p>\n

While Bitcoin\u2019s SoV credential improves above $100,000, Ecoinometrics, a Bitcoin-focused macroeconomic\u00a0newsletter<\/a>, pointed out that it was not smooth sailing in Q1 2025.\u00a0<\/p>\n

In 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. <\/p>\n

The newsletter noted that this shift could be attributed to Q1 uncertainty surrounding Federal Reserve policy, trade policy, and the US economy. Ecoinometrics stated,<\/p>\n

\u201cBetween two hard assets, gold and Bitcoin, it\u2019s easy to see why capital went to the one seen as a haven.\u201d\u00a0Bitcoin vs gold ETF netflows comparison. Source: X.com<\/em><\/p>\n

Gold, 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<\/p>\n

Recent developments signal a shift: US trade policy clarity, a softer Federal Reserve stance, and easing financial conditions have spurred steady inflows into Bitcoin ETFs.<\/p>\n

Related:\u00a0Bitcoin bull flag and standard profit taking hint at eventual rally to new BTC price highs<\/strong><\/em><\/a><\/p>\n

Bitcoin is on track for new highs in 2025<\/h2>\n

A 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<\/p>\n

Bitcoin price performance in risk-on, risk-off. Source: Bitcoin Suisse<\/em><\/p>\n

With 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<\/a><\/p>\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<\/p>\n

Similarly, Cointelegraph reported<\/a> 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<\/p>\n

If 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<\/p>\n

Related:\u00a0Altcoins are on the verge of \u2018most powerful rally\u2019 since 2017 \u2014 Analyst<\/strong><\/em><\/a><\/p>\n

This 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.<\/p>","protected":false},"excerpt":{"rendered":"

Key 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 Bitcoin\u2019s 3.84%, driven by economic uncertainty. Bitcoin ETF inflows are recovering, and analysts predict BTC could reach $110,000\u2013$444,000 in 2025. Bitcoin\u2019s (BTC) price is holding above $100,000, […]<\/p>","protected":false},"author":0,"featured_media":20823,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9],"tags":[],"class_list":["post-20822","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-finance"],"_links":{"self":[{"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/posts\/20822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/comments?post=20822"}],"version-history":[{"count":0,"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/posts\/20822\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/media\/20823"}],"wp:attachment":[{"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/media?parent=20822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/categories?post=20822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/tags?post=20822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}