Bitcoin vs. Gold: Is It Time for a Leadership Shift?

By: coindoo|2025/05/04 18:45:01
0
Share
copy
In a recent tweet, Timmer pointed out that Bitcoin and gold have been moving in opposing cycles, particularly when measured by their Sharpe Ratios, a popular metric for assessing risk-adjusted returns. Despite recent weakness in Bitcoin’s ratio (currently at -0.40), gold’s performance now seems to be plateauing, with its Sharpe Ratio rising to 1.33.“From the looks of it, it may well be Bitcoin’s turn to take the lead,” Timmer noted. “Perhaps we are due for a baton-pass from gold to Bitcoin.”The Sharpe Ratio Trend: BTC Poised to Rebound?The chart shared in Timmer’s post highlights the alternating strength of gold and Bitcoin over time. Each asset has had periods of outperformance, and the Sharpe Ratio has provided valuable clues. Currently:Gold is outperforming, but may be peaking.Bitcoin is lagging, but the negative Sharpe could indicate it’s near a bottom.This could mean a rotation back into BTC is due, particularly if risk appetite returns and capital shifts away from defensive assets like gold. .dark-mode .read-more {background-color: #343a40 !important;} READ MORE: Bitcoin’s Best Days Are Ahead, Says BitMEX Founder – Here’s Why A Macro Perspective on Digital and Traditional Safe HavensAs head of macro strategy at Fidelity, Timmer often looks at digital assets through a broader lens. His analysis suggests that Bitcoin is becoming a credible alternative store of value—complementary, but also increasingly competitive with gold. While both serve as hedges, their cycles and correlations differ significantly.With the recent divergence in their Sharpe Ratios, Timmer’s analysis may be pointing to a critical inflection point. If history rhymes, Bitcoin’s next move could surprise to the upside.The post Bitcoin vs. Gold: Is It Time for a Leadership Shift? appeared first on Coindoo.

You may also like

Stop Talking About Gold, Bitcoin Is Not a Safe Haven Asset

One cannot rely on macro narratives like "Gold Rotation" to determine whether Bitcoin has bottomed. True bottom signals will only appear during position unwinding and extreme pessimistic sentiment.

Aave Founder: What Is the Secret of the DeFi Lending Market?

When on-chain lending becomes significantly cheaper to operate end-to-end compared to traditional lending, mass adoption becomes not a question of if, but of when.

The Trader's Playbook: 7 Market Cycle Lessons From LALIGA’s 90 Minutes

What do LALIGA matches teach about crypto markets? Learn how consolidation, breakouts, and late-cycle volatility shape disciplined trading decisions.

How Smart Money Tracker Survived Live AI Trading at WEEX AI Hackathon

Discover how WEEX AI Trading Hackathon tested strategies with real capital—no simulations. See how Smart Money Tracker survived flash crashes and leveraged 18x in live markets.

80% Win Rate to 40% Drawdown: An AI Trader's Brutal Recalibration at WEEX AI Wars

Dive into the technical blueprint of an AI trading system built on LLaMA reasoning and multi-agent execution. See how Quantum Quaser uses confidence thresholds & volatility filters at WEEX AI Wars, and learn the key to unlocking 95% win rate trades.

AI Trading Strategy Explained: How a Beginner Tiana Reached the WEEX AI Trading Hackathon Finals

Can AI trading really outperform human emotion? In this exclusive WEEX Hackathon finalist interview, discover how behavioral signal strategies, SOL trend setups, and disciplined AI execution secured a spot in the finals.

Popular coins

Latest Crypto News

Read more