BTC trading in six-figure territory shows it is ready to take on the 'role' of gold, according to Fidelity executive
Jurrien Timmer of Fidelity claims that bitcoin's rally back to six-figure territory reinforces its status as a store of value, equating it to investing in gold.
Key points:
Bitcoin's Sharpe ratio converges with that of gold, indicating similar risk-adjusted returns, supporting its role as a store of value.
Gold outperformed bitcoin in the first quarter of 2025 with a price gain of 30.33% compared to bitcoin's 3.84%, driven by economic uncertainty.
Flows into bitcoin ETFs are recovering, and analysts predict that BTC could reach between $110,000 and $444,000 in 2025.
The price of bitcoin remains above $100,000, prompting Fidelity's Director of Global Macro, Jurrien Timmer, to state that the crypto asset could reclaim its position as a leading contender for a store of value.
Timmer's recent analysis highlights a convergence in the Sharpe ratios of bitcoin and gold, suggesting that both assets are becoming increasingly comparable in terms of risk-adjusted returns. The Sharpe ratio measures the return that an investment provides for the risk taken, comparing its performance to a risk-free benchmark in relation to its volatility.
The chart below, which tracks weekly data between 2018 and May 2025, shows that bitcoin's returns (1x) are approaching those of gold (4x), with gold at $22.48 and bitcoin at $15.95 in terms of relative performance.
