Bitcoin's Price Surge Above $100,000 Boosts Store-Of-Value Credentials

Bitcoin’s price has been holding above $100,000, leading Fidelity Director of Global Macro, Jurrien Timmer, to suggest that the cryptocurrency could reclaim its position as a leading store-of-value contender. Timmer’s analysis highlights a convergence in the Sharpe ratios of Bitcoin and gold, indicating that the two assets are increasingly comparable in terms of 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.

Timmer recommended a 4:1 gold-to-Bitcoin ratio for a store-of-value hedge, noting the intriguing observation that gold and Bitcoin, despite being on the same store-of-value team, are negatively correlated. He emphasized that Bitcoin’s risk-reward ratio has continued to impress, stating that there is no other asset quite like it.

While Bitcoin’s store-of-value credentials improve above $100,000, Ecoinometrics, a Bitcoin-focused macroeconomic newsletter, pointed out that the first quarter of 2025 was not smooth sailing for the cryptocurrency. In 2024, Bitcoin spot exchange-traded funds (ETFs) saw significant net inflows, but the first four months of 2025 saw Bitcoin ETF flows drop to less than a third compared to 2024, while gold ETFs attracted more capital. This shift could be attributed to uncertainty surrounding Federal Reserve policy, trade policy, and the US economy. Ecoinometrics stated that between two hard assets, gold and Bitcoin, it’s easy to see why capital went to the one seen as a haven.

Gold, with a 30.33% price gain in 2025 compared to Bitcoin’s 3.84%, benefited from its stability during economic unease. Additionally, the analysis added that Bitcoin performed better as a “high-beta growth asset,” thriving in rising liquidity and fiat debasement environments. Recent developments, including US trade policy clarity, a softer Federal Reserve stance, and easing financial conditions, have spurred steady inflows into Bitcoin ETFs.

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’s high Sharpe ratio has allowed the asset to thrive in risk-on and risk-off environments since the US presidential election. With more than 88% of its supply in profit, BTC currently behaves as a high-conviction bet, where the likelihood of an “acceleration phase” moving forward. Bitcoin Suisse head of research Dominic Weibei said, “In 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.”

Similarly, 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’s potential revaluation as a non-sovereign hard asset. If Bitcoin’s 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.