Key Takeaways:
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Bitcoin exhibits resilience in varying market conditions, according to insights from Bitcoin Suisse.
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The cryptocurrency boasts a Sharpe ratio of 1.72, trailing only gold, indicating strong risk-adjusted returns.
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An increasingly buyer-centric market suggests robust interest from both institutional and retail investors, potentially leading to a supply squeeze and new highs in May.
Recently, Bitcoin (BTC) surpassed the $100,000 mark for the first time since January, reigniting speculation about the possibility of reaching new all-time highs above $110,000 in May. According to Bitcoin Suisse, a provider of crypto custody services, this bullish trend is attributed to Bitcoin’s performance across both risk-on and risk-off environments since the U.S. presidential elections.
Evidence presented in Bitcoin Suisse’s “Industry Rollup” report highlights Bitcoin’s impressive Sharpe ratio of 1.72, a financial metric that gauges risk-adjusted returns by analyzing the asset’s average return against the risk-free rate. A higher Sharpe ratio signifies superior risk-adjusted returns; Bitcoin’s robust score—eclipsed only by gold—reveals its growing maturity as a market asset.
Over the last two quarters, Bitcoin has shown versatility as a dual-purpose investment. In risk-off scenarios, it has served as a macro hedge against geopolitical instability and de-dollarization concerns, while in risk-on periods, its status as a high-conviction growth asset has been reinforced, with more than 86% of its supply recording profits. As illustrated in the accompanying chart, Bitcoin has consistently delivered positive net returns during key economic phases since November 2024. As Dominic Weibei, head of research at Bitcoin Suisse, remarked:
“In this environment, Bitcoin has emerged as the Swiss army knife asset. 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.”
According to a report from Cointelegraph, Bitcoin is on track for its next acceleration phase. Fidelity Digital Assets’ Q2 2025 Signals Report notes that Bitcoin’s historical patterns indicate it often experiences explosive price surges marked by volatility and substantial profits.
Dominance of Bitcoin Spot Buyers
A noteworthy development occurred on May 7, when the Bitcoin spot taker cumulative volume delta (CVD) turned buyer dominant for the first time since March 2024. This 90-day CVD metric, which assesses the net difference between market buy and sell volumes, now reflects a dominant buyer presence, driven primarily by institutional interest and substantial inflows into spot Bitcoin ETFs, totaling over $4.5 billion since April 1.
This shift in demand dynamics, combined with Bitcoin’s favorable Sharpe ratio, positions the cryptocurrency to effectively leverage current market conditions. As both corporations and institutions continue to invest in Bitcoin, a supply squeeze may propel prices beyond the $110,000 threshold in May.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making any decisions.
