Bitcoin's recent surge above the $100,000 mark has sparked speculation of a new all-time high beyond $110,000 in May, driven by its resilience in both risk-on and risk-off environments, according to insights from Bitcoin Suisse, a prominent crypto custody service provider. The firm's "Industry Rollup" report reveals Bitcoin's impressive Sharpe ratio of 1.72, which is second only to gold, indicating the cryptocurrency's maturity as an asset and offering superior risk-adjusted returns.
Bitcoin has demonstrated exceptional performance as a dual-purpose investment over the past two quarters. It has acted as a macro hedge in risk-off conditions, benefiting from geopolitical tensions and de-dollarization concerns, while also behaving as a high-conviction growth asset in risk-on scenarios. With over 86% of its supply currently in profit, Bitcoin has maintained a positive net return through various market phases since November 2024, making it a versatile asset in diverse market conditions.
Dominic Weibei, head of research at Bitcoin Suisse, describes Bitcoin as the "Swiss army knife asset," capable of thriving regardless of whether equities rally or bonds crumble, thanks to its supply-demand dynamics. The asset's ability to offer a unique win-win profile that traditional assets cannot replicate has attracted institutional and retail interest, positioning Bitcoin for further gains.
Fidelity Digital Assets' Q2 2025 Signals Report also anticipates Bitcoin entering a new "acceleration phase," characterized by high volatility and profit potential. The historical tendency of Bitcoin to undergo explosive price surges aligns with current market conditions, hinting at a bullish trajectory for the cryptocurrency in the coming months.
A notable development in the market is the shift to a buyer-dominant trend among Bitcoin spot takers, reflected in the cumulative volume delta (CVD) turning buyer dominant for the first time since March 2024. This change in buyer behavior, driven by institutional interest and significant spot Bitcoin ETF inflows exceeding $4.5 billion since April 1, signals aggressive buying pressure that could lead to a supply squeeze and push Bitcoin prices above $110,000.
As corporations and institutions continue to embrace Bitcoin as a strategic asset, its robust Sharpe ratio and evolving market dynamics position the cryptocurrency for further growth. While market conditions remain subject to volatility and risks, Bitcoin's ability to perform well in diverse environments and attract strong interest from both institutional and retail investors bodes well for its potential to break new highs in the near future.
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