Bitcoin Surges Past $100,000, Institutional Interest Drives 10% Gain

Bitcoin's price has recently surpassed the $100,000 mark, sparking speculation about a potential new all-time high above $110,000 in May. This surge is attributed to Bitcoin's ability to perform well in both risk-on and risk-off environments, as highlighted by Bitcoin Suisse, a crypto custody service provider. The cryptocurrency has shown resilience and growth potential in various market conditions, making it an attractive investment option for both institutional and retail investors.

Bitcoin's Sharpe ratio of 1.72, second only to gold, underscores its maturity as an asset. This financial metric measures risk-adjusted returns, and a higher Sharpe ratio indicates superior risk-adjusted returns. Bitcoin's robust score highlights its growing maturity as an asset, offering investors a reliable option for risk-adjusted returns.

Over the past two quarters, Bitcoin has excelled as a dual-purpose investment. It acts as a macro hedge in risk-off climates, benefiting from geopolitical tensions and de-dollarization concerns. In risk-on scenarios, it behaves as a high-conviction growth asset, with over 86% of its supply in profit. This dual-purpose nature has allowed Bitcoin to maintain a positive net return through various key phases since November 2024. Dominic Weibei, head of research at Bitcoin Suisse, described Bitcoin as the "Swiss army knife asset," capable of delivering a win-win profile that traditional assets simply can't offer.

On May 7, Bitcoin spot taker cumulative volume delta (CVD) over 90 days turned buyer dominant for the first time since March 2024. This shift to "taker buy dominant" aggressive buying pressure is driven by institutional interest and spot Bitcoin ETF inflows, i.e., over $4.5 billion spot inflows since April 1. This structural change in demand, coupled with Bitcoin's robust Sharpe ratio, could allow BTC to capitalize on current market conditions. As corporations and institutions rush into Bitcoin, a supply squeeze may propel prices past $110,000 in May.

According to the analyst's forecast, Bitcoin is gearing up for the next leg of an "acceleration phase," characterized by high volatility and high profit. This historical tendency to enter explosive price surges suggests that Bitcoin's price could continue to rise, potentially reaching new all-time highs in the near future. The current momentum and bullish sentiment, driven by geopolitical optimism, favorable regulatory developments, and increasing institutional interest, indicate that Bitcoin's rally may continue, potentially reaching new all-time highs in the near future.