Bitcoin (BTC) is maintaining a price level above $100,000 (approximately 146 million won), with analysis suggesting it can reestablish its position as a representative value storage medium. Jurrien Timmer, Global Macro Director at Fidelity, highlighted in a recent report that the Sharpe ratio of Bitcoin and gold are converging, presenting this outlook.
The Sharpe ratio is an indicator showing risk-adjusted returns, calculated by removing the risk-free asset return from the asset's return and dividing by volatility. Timmer assessed that as Bitcoin's Sharpe ratio converges to a level similar to gold, both assets could potentially deliver comparable investment performance under risk-adjusted standards.
Analyzing weekly data from 2018 to 2025, gold recorded a relative performance benchmark of 22.48, while Bitcoin recorded 15.95, rapidly narrowing the gap. Notably, while Bitcoin rose only 3.84% in the first quarter of 2025, gold surged 30.33% in the same period, demonstrating investor preference during a market environment with heightened risk aversion.
However, market sentiment is gradually shifting. With capital inflows into Bitcoin ETFs recovering investment sentiment, some analysts are consecutively forecasting that Bitcoin could reach $110,000-$444,000 (approximately 160 million-6.48 billion won) within 2025. This reflects market expectations of Bitcoin potentially establishing itself as a long-term value storage medium like gold.
The converging return structures of gold and Bitcoin are particularly noteworthy in an environment of distrust in fiat currency and economic uncertainty. Experts believe that major events like potential changes in Trump's economic policies could simultaneously provide additional volatility and opportunities in the cryptocurrency market.
Real-time news...Go to Token Post Telegram
<Copyright ⓒ TokenPost, Unauthorized Reproduction and Redistribution Prohibited>
