key takeaways:
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The sharp ratio of bitcoin converks with gold, which indicates similar risk-time returns, supports its store-off-value role.
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Gold improved bitcoin in Q1 2025 with a 30.33% price profit of 3.84% of Bitcoin operated by economic uncertainty.
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Bitcoin ETF flow is recovering, and analysts estimate that BTC can reach $ 110,000- $ 444,000 in 2025.
Bitcoin (BTC) The price is above $ 100,000, the major fidelity director of the global macro, Jurrian Timer stated that Crypto asset can regain its position as a major store-off-value contender.
The recent analysis of Timer highlights an convergence in bitcoin and sharp ratio of gold, suggests that both assets are rapidly comparable to risk-proposed returns. The sharp ratio measures the rate of return, which provides an investment for the risk, compares its performance with the risk-free benchmark relative to its instability.
The chart below, tracking the weekly data between 2018 and May 2025, is shown holding the return (1x) of bitcoin to the gold (4X), with $ 22.48 with gold and $ 15.95 in the conditions of relative performance at $ 22.48 and bitcoin $ 15.95.
From an allocation point of view, Timer recommended a 4: 1 gold-to-bitcoin ratio for a store-off-value hedge, which exposes a complicated observation. Timer said,
“I am fascinated by the fact that the most negative corresponding property for bitcoin is to sleep. For two players on the same store-of-value team, this is not what I will expect to see. The risk-relieved ratio of bitcoin continues to affect. It has no other assets!”
While bitcoin’s SOV credential improves above $ 100,000, ecoinometrics, a bitcoin-centric macroeconomic nBackylatorTold that this Q1 was not smooth sailing in 2025.
In 2024, bitcoin spot exchange-traded traded-fands (ETFs) shocked a net flow of $ 35 billion, procuring 500,000 BTC and 120% returns. However, 2025 began on a separate note. In the first four months, Bitcoin ETF saw a decline of less than one third of the 2024, while Gold ETF attracted more capital.
The newspaper said that this change could be attributed to the Federal Reserve Policy, Trade Policy and the Q1 uncertainty around the US economy. Echoinometrics said,
“Between two hard assets, gold and bitcoin, it is easy to see why Capital went to a person seen as a shelter.”
Gold benefited from its stability during economic discomfort, compared to 3.84% of bitcoin in 2025 with a price profit of 30.33%. Additionally, the analysis stated that Bitcoin performed better as “high-beeta growth assets”, which took place in increasing liquidity and fiat debges environment.
Recent developments indicate a change: American trade policy is clarity, a soft federal reserve stance, and decreasing financial conditions, there is a stable flow in the bitcoin ETF.
Bitcoin is on track for new heights in 2025
A high sharp ratio is a positive metric for bitcoin, which significantly increases the possibility of reaching new all-time high above $ 110,000 in May. According to a crypto detention firm Bitcoin Suis, BTC’s high sharp ratio has allowed the property to flourish in the risk-end and risk atmosphere since the US presidential election.
With more than 88% of its supply in profit, BTC currently behaves as a high-conversion bet, where the possibility of “acceleration phase” moves forward. Bitcoin suis head of research dominic vibe Said,
“In this atmosphere, Bitcoin has emerged as the Swiss Army Nife Asset. Whether the equity rally or bond karbal, the BTC trades on its supply-demand fundamental, provides a win-win profile that the traditional property cannot only offer.”
Similarly, cointelegraph Informed According to a gold-based forecast, that bitcoin has a “decent opportunity” to reach $ 250,000 or more in 2025, which is operated by its interaction with gold, according to the gold forecast. The report uses a landscape-based structure contained in its gold model to project possible revaluation of bitcoin as a non-perfect hard property.
If the network value of bitcoin, which is measured in gold, follows a power curve, and gold maintains its current value, analysts suggest that it can hit $ 444,000 in 2025. However, bitcoin analysts indicate a “appropriate” target of $ 220,000 for an analyst APSK32.
Related: Altcoins are on the verge of ‘most powerful rally’ since 2017 – analysts
There are no investment advice or recommendations in this article. Each investment and business move include risk, and readers should conduct their own research while taking decisions.
