Data suggests Bitcoin price could rally above $110,000 in May.

By: bitcoin ethereum news|2025/05/10 15:45:06
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Key Takeaways: Bitcoin is driven by its ability to perform well in risk-on and risk-off environments, according to Bitcoin Suisse. Bitcoin’s Sharpe ratio of 1.72, second only to gold, underscores its maturity as an asset, offering superior risk-adjusted returns. A buyer-dominant market signals strong institutional and retail interest that could drive a supply squeeze and break new highs in May. Bitcoin (BTC) price breached the $100,000 mark for the first time since January, fueling speculation of a new all-time high above $110,000 in May. According to Bitcoin Suisse, a crypto custody service provider, BTC’s bullish momentum stems from its ability to thrive in risk-on and risk-off environments since the US presidential election. Data from its “Industry Rollup” report highlights Bitcoin’s high Sharpe ratio of 1.72, a key financial metric that measures risk-adjusted returns by dividing an asset’s average return (minus the risk-free rate). A higher Sharpe ratio reflects superior risk-adjusted returns, and in 2025, Bitcoin’s robust score, surpassed only by gold, highlights its growing maturity as an asset. Over the past two quarters, BTC excelled as a dual-purpose investment. It acts as a macro hedge in risk-off climates, benefiting from geopolitical tensions and de-dollarization concerns. In risk-on scenarios, it behaved as a high-conviction growth asset, with over 86% of its supply in profit. As illustrated in the chart, Bitcoin maintained a positive net return through various key phases since November 2024. Bitcoin Suisse head of research Dominic Weibei said, “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.” Cointelegraph reported that Bitcoin is gearing up for the next leg of an “acceleration phase,” according to Fidelity Digital Assets’ Q2 2025 Signals Report. Fidelity analyst Zack Wainwright explained that Bitcoin’s historical tendency to enter explosive price surges is characterized by “high volatility and high profit.” Related: Bitcoin eyes sub-$100K liquidity — Watch these BTC price levels next Bitcoin spot buyers turn “dominant” On May 7, Bitcoin spot taker cumulative volume delta (CVD) over 90 days turned buyer dominant for the first time since March 2024. The 90-day spot taker CVD, which measures the net difference between market buy and sell volumes, reflects buyer or seller activity over a prolonged period. This shift to “taker buy dominant” aggressive buying pressure, driven by institutional interest and spot Bitcoin ETF inflows, i.e., over $4.5 billion spot inflows since April 1. This structural change in demand and Bitcoin’s robust Sharpe ratio could allow BTC to capitalize on current market conditions. As corporations and institutions rush into Bitcoin, a supply squeeze may propel prices past $110,000 in May. Related: How high can Bitcoin price go? This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. Source: https://cointelegraph.com/news/chance-of-bitcoin-price-highs-above-110-k-in-may-increasing-here-s-why?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound

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