Fidelity Global Macro Director Jurrien Timmer pointed out that as Bitcoin returns to $100,000, its 52-week Sharpe ratio is aligning with that of gold, indicating that the gap in risk-adjusted performance between the two is narrowing.

The current Sharpe ratio for gold is 1.33, while Bitcoin's is -0.40. According to the 4:1 allocation model (gold: Bitcoin) proposed by Timmer, the volatility and cumulative returns of both are relatively close, allowing gold to serve as a hedging buffer for Bitcoin without affecting its long-term return potential.

Data as of May 16:

Bitcoin: approximately $103,600

Gold: approximately $3,213/ounce

Gold has risen about 33% year-to-date; Bitcoin has rebounded about 25% from its April low ($76,000)

Fidelity believes that if the trend continues, portfolios may be rebalanced to increase the allocation of crypto assets.