BTC trading in six-figure territory shows it is ready to take on the "role" of gold, according to a Fidelity executive.
Fidelity's Jurrien Timmer states that the bitcoin rally back to six-figure territory reinforces its status as a store of value, equating it to investing in gold.
remains above $100,000, which led Fidelity's Global Macro Director, Jurrien Timmer, to say that the crypto asset could reclaim its position as a leading store of value contender.
Recent analysis from Timmer 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 relative to its volatility.
The chart below, tracking weekly data from 2018 to May 2025, shows that bitcoin returns (1x) are approaching those of gold (4x), with gold at $22.48 and bitcoin at $15.95 in terms of relative performance.
From an allocation standpoint, Timmer recommended a 4:1 ratio of gold to bitcoin for a store of value hedge, highlighting an intriguing observation. Timmer said:
"I remain fascinated by the fact that the most negatively correlated asset with bitcoin is gold. For two players on the same team of store of value, it’s not what I would expect to see. The risk-reward relationship of bitcoin continues to impress. There is no other asset like this!"
As bitcoin's store of value credentials improve above $100,000, Ecoinometrics, a macroeconomic newsletter focused on bitcoin, noted that it was not an easy path in the first quarter of 2025.
In 2024, spot bitcoin exchange-traded funds (ETFs) recorded impressive net inflows of $35 billion, buying 500,000 BTC and generating a 120% return. However, 2025 began on a different note. The first four months saw bitcoin ETF flows fall to less than a third compared to 2024, while gold ETFs attracted more capital.
The newsletter noted that this shift could be attributed to the uncertainty of the first quarter surrounding Federal Reserve policy, trade policy, and the U.S. economy. Ecoinometrics stated:
"Between two hard assets, gold and bitcoin, it’s easy to see why capital went towards the one considered a safe haven."
Gold, with a price gain of 30.33% in 2025 versus bitcoin's 3.84%, benefited from its stability during economic uncertainty. Additionally, the analysis added that bitcoin performed better as a "high beta growth asset," thriving in environments of increased liquidity and fiat currency devaluation.
Recent developments indicate a shift: clarity in U.S. trade policy, a softer stance from the Federal Reserve, and looser financial conditions have stimulated steady flows into bitcoin ETFs.
Bitcoin is on track for new highs in 2025.
A higher Sharpe ratio is a positive metric for bitcoin, significantly increasing the probability of reaching new all-time highs above $110,000 in May. According to Bitcoin Suisse, a cryptocurrency custody firm, the high Sharpe ratio of BTC has allowed the asset to thrive in both risk-on and risk-off environments since the U.S. presidential elections.
With over 88% of its supply in profit, BTC currently behaves as a high-conviction bet, where the likelihood of an “acceleration phase” is advancing. Bitcoin Suisse's head of research, Dominic Weibei, said:
"In this environment, bitcoin has emerged as the Swiss army knife asset. Whether stocks rise or bonds collapse, BTC operates on its fundamentals of supply and demand, offering a win-win profile that traditional assets simply cannot provide."
Similarly, Cointelegraph reported that bitcoin has a "decent chance" of reaching $250,000 or more in 2025, driven by its interaction with gold, according to a gold-based forecast. The report uses a scenario-based framework rooted in its gold model to project the potential revaluation of bitcoin as a non-sovereign hard asset.
If the network value of bitcoin, measured in gold, follows a power curve, and gold maintains its current value, analysts suggest it could reach $444,000 in 2025. However, a more conservative estimate from bitcoin analyst Apsk32 points to a "reasonable" target of $220,000 for the year.