Bitcoin’s recent ascension into six-figure territory is stirring excitement and speculation, drawing comparisons to gold as a formidable store-of-value asset. As of today, May 20, 2025, Bitcoin is comfortably trading above $100,000, leading some analysts to suggest it may soon carry the torch from gold. Fidelity’s Director of Global Macro, Jurrien Timmer, highlights this trend by pointing out the convergence in the Sharpe ratios of Bitcoin and gold, suggesting similar risk-adjusted returns.
Bitcoin vs Gold: The Store-of-Value Showdown
Here’s the catch: while Bitcoin has demonstrated impressive resilience, gold has outpaced it in the first quarter of 2025, boasting a 30.33% price gain compared to Bitcoin’s modest 3.84%. This disparity is largely attributed to the global economic uncertainty that has driven investors toward gold, traditionally viewed as a safe haven. “For two players on the same store-of-value team, it’s not what I would expect to see,” Timmer muses, noting the unexpected negative correlation between the two assets. As explored in our recent coverage of Gold’s correction and its implications for Bitcoin, this trend might actually benefit Bitcoin in the long run.
Yet, the landscape is shifting. Bitcoin exchange-traded funds (ETFs), which saw a dramatic $35 billion net inflow in 2024, experienced a slowdown at the start of 2025. The flow of funds to Bitcoin ETFs was less than a third of the previous year’s levels, while gold ETFs attracted more capital, according to Ecoinometrics, a Bitcoin-focused macroeconomic newsletter. The newsletter attributed this shift to uncertainties surrounding Federal Reserve policy and the broader economic climate.
Bitcoin’s High-beta Growth Potential
Despite the early-year hiccup, Bitcoin’s potential remains undeterred. Recent developments, including clarity in US trade policy and a softer stance from the Federal Reserve, have rekindled interest in Bitcoin ETFs. This renewed enthusiasm is not without reason—Bitcoin is often seen as a “high-beta growth asset,” thriving in environments characterized by increased liquidity and fiat debasement. This aligns with predictions that Bitcoin ETFs and government adoption could drive BTC to $1M by 2029, highlighting the long-term growth potential of the cryptocurrency.
Bitcoin Suisse, a prominent crypto custody firm, further underscores this sentiment, highlighting Bitcoin’s high Sharpe ratio as a key factor for its continued strength. Dominic Weibei, Bitcoin Suisse’s head of research, likens Bitcoin to a “Swiss army knife asset,” capable of navigating both risk-on and risk-off environments seamlessly. “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,” Weibei explains.
The Road Ahead: Bold Predictions and Cautious Optimism
The future looks promising for Bitcoin, with analysts forecasting a range of potential price points. Some, like Cointelegraph, suggest Bitcoin could reach $250,000 or beyond, buoyed by its interplay with gold. Others, like the analyst Apsk32, offer a more measured target of $220,000 by year’s end.
Adding to the intrigue, Bitcoin’s network value, when assessed relative to gold, presents a scenario where Bitcoin’s price might surge to $444,000 if certain conditions align. However, such projections are not without their skeptics, raising questions about whether these ambitious targets are truly attainable.
As Bitcoin continues to carve out its role in the financial ecosystem, its journey is anything but certain. What remains clear is its potential to redefine the landscape of store-of-value assets, challenging gold’s long-standing dominance. With the market dynamics in flux, Bitcoin’s path forward is filled with both opportunity and uncertainty. As we look toward the rest of 2025, one thing is certain: Bitcoin remains a focal point of interest, poised for what could be a historic year.
Source
This article is based on: Bitcoin trading in six-figure territory shows BTC is ready to carry gold’s ‘baton’ — Fidelity exec
Further Reading
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- Bitcoin eyes gains as macro data makes US recession 2025 ‘base case’
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
