🔥 Poll: Can BTC Break Its ATH This Week?
ATH Recap: Bitcoin hit its ATH of $109,702.5 on Jan 20, 2025, followed by a consolidation phase.
Recent Trends: With easing geopolitical tensions, sustained institutional inflows, and improving market sentiment, BTC has shown strong upward momentum.
This Week’s Key Question: The market looks bullish, but the ATH remains a major resistance level.
🗳️ Share your take—let’s see where the market goes!
Fidelity executive: Bitcoin (BTC) trading has entered the six-figure range and is ready to take over the "baton" from gold.
Source: Cointelegraph Original: "Fidelity Executives: Bitcoin (BTC) Trading Enters Six-Figure Territory, Ready to Take the "Batons" from Gold"
The price of Bitcoin (BTC) remains stable above $100,000, and Jurrien Timmer, the global macro director at Fidelity, stated that this cryptocurrency could re-establish its position as a leading competitor for value storage.
Jurrien Timmer's latest analysis points out that the Sharpe ratios of Bitcoin (BTC) and gold are converging, indicating that these two assets are becoming increasingly comparable in terms of risk-adjusted returns. The Sharpe ratio measures the return of an investment relative to its risk, evaluated by comparing its performance to a risk-free benchmark, while taking its volatility into account.
The chart below tracks weekly data from 2018 to May 2025, showing that Bitcoin's return (1x) is catching up to gold's return (4x), with gold performing relatively at $22.48 and Bitcoin at $15.95.
From the perspective of asset allocation, Timmer recommends a 4:1 ratio of gold to Bitcoin as a hedge for value storage, and points out an interesting observation. Timmer stated:
Although Bitcoin's store of value (SoV) qualifications have improved when its price exceeds $100,000, the communication Ecoinometrics, which focuses on macroeconomic analysis of Bitcoin, points out that the first quarter of 2025 will not be smooth sailing.
In 2024, the net inflow of Bitcoin spot exchange-traded funds (ETFs) reached as high as $35 billion, purchasing 500,000 BTC and driving a 120% return. However, the beginning of 2025 has been different. In the first four months, the inflow of Bitcoin ETF funds was less than one-third of that in 2024, while gold ETFs attracted more funds.
The communication pointed out that this shift may be attributed to uncertainties surrounding federal reserve policy, trade policy, and the U.S. economy in the first quarter. Ecoinometrics stated:
In 2025, the price of gold increased by 30.33%, while Bitcoin only rose by 3.84%. Gold benefited from its stability during times of economic instability. Additionally, the analysis pointed out that Bitcoin performed better as a "high beta growth asset," thriving in an environment of rising liquidity and depreciation of fiat currencies.
Recent developments indicate a shift: clear U.S. trade policies, a softened stance from the Federal Reserve, and eased financial conditions have led to a continuous inflow of funds into Bitcoin ETFs.
A higher Sharpe ratio is a positive indicator for Bitcoin, significantly increasing the likelihood of it breaking the historical high of $110,000 in May. According to data from the cryptocurrency custody company Bitcoin Suisse, BTC's high Sharpe ratio allows it to perform well in both risk-on and risk-off environments after the U.S. presidential election.
Currently, over 88% of the Bitcoin supply is in a profitable state, with BTC performing as a high-conviction bet that may enter an "acceleration phase" in the future. Dominic Weibei, the research director at Bitcoin Suisse, stated:
Similarly, Cointelegraph reports that based on gold-based predictions, Bitcoin has a "significant chance" of reaching $250,000 or higher by 2025, a forecast stemming from its interactions with gold. The report uses a scenario framework based on gold models to predict the potential revaluation of Bitcoin as a non-sovereign hard asset.
If the network value of Bitcoin (measured in gold) follows a power curve and gold maintains its current value, analysts predict it could reach $444,000 by 2025. However, Bitcoin analyst Apsk32 provided a more conservative estimate, stating that this year's "reasonable" target is $220,000.
Related recommendations: Is the Bitcoin bull market "almost over"? Traders are divided on the BTC price of $105,000.
This article does not contain investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.