Bitcoin's positive performance in different market environments, strong risk-adjusted returns, and institutional buying pressure may drive it to break through $110,000 in May.
- According to Bitcoin Suisse, a Bitcoin financial services company, Bitcoin's upward momentum stems from its ability to perform excellently in both risk-appetite and risk-averse environments.
- Bitcoin's Sharpe ratio of 1.72, second only to gold, highlights its characteristics as a mature asset, providing exceptional risk-adjusted returns.
- Buyer-dominated market signals indicate strong institutional and retail interest, which may lead to supply tightening and a new high in May.
Bitcoin's price has broken through the $100,000 mark for the first time since January, sparking speculation about breaking the historical high of $110,000 in May. Bitcoin Suisse, a cryptocurrency custody service provider, states that BTC's bullish momentum since the US presidential election stems from its outstanding performance in both risk-appetite and risk-averse environments.
Data from its 'Industry Overview' report shows Bitcoin's Sharpe ratio reaching 1.72. This key financial metric measures risk-adjusted returns by calculating the asset's average return (minus the risk-free rate). A higher Sharpe ratio indicates better risk-adjusted returns. In 2025, Bitcoin's robust figure is second only to gold, further highlighting its growing maturity as an asset.
Bitcoin price performance in different environments. Source: Bitcoin Suisse
Over the past two quarters, BTC has performed excellently as a dual-purpose investment. In a risk-averse environment, it serves as a macro hedging tool, benefiting from geopolitical tensions and de-dollarization concerns; in a risk-appetite environment, it becomes a high-conviction growth asset, with over 86% of its supply in a profitable state. As shown in the image, Bitcoin has maintained positive net returns across various key stages since November 2024. Bitcoin Suisse Research Director Dominic Weibei stated:
"In this environment, Bitcoin has become a 'Swiss Army knife' asset. Whether stocks rise or bonds collapse, BTC trading is based on its supply and demand fundamentals, offering a win-win characteristic that traditional assets cannot match."
Cointelegraph reports that according to Fidelity Digital Assets' '2025 Q2 Signals Report', Bitcoin is preparing to enter the next phase of 'acceleration'. Fidelity analyst Zack Wainwright explains that Bitcoin's historical characteristics of entering a breakout upward trend are 'high volatility and high returns'.
Bitcoin Spot Buyers Become "Dominant"
On May 7, the 90-day moving average of Bitcoin spot taker cumulative volume delta (CVD) turned buyer-dominated for the first time since March 2024. The 90-day spot taker CVD measures the net difference in market buy and sell volumes, reflecting long-term buyer or seller activity. This shift to "actively buying-dominated" is driven by institutional interest and Bitcoin spot ETF fund inflows—for example, over $4.5 billion in spot fund inflows since April 1.
Bitcoin spot taker CVD chart. Source: CryptoQuant
This structural change in demand and Bitcoin's strong Sharpe ratio may give BTC an advantage under current market conditions. As enterprises and institutions flood into Bitcoin, supply tightening may drive the price to break through $110,000 in May.
