Bitcoin's recent performance has led to speculation about its price reaching new heights above $110,000 in May. Several factors contribute to this bullish outlook: Bitcoin's ability to thrive in both risk-on and risk-off market conditions, a favorable Sharpe ratio of 1.72 which indicates strong risk-adjusted returns, and increasing institutional interest alongside retail demand. With Bitcoin surpassing the $100,000 mark for the first time since January, analysts point to its dual purpose as a macro hedge during risk-off phases and a high-conviction growth asset in risk-on scenarios. The shift to a buyer-dominant market, indicated by increased buying pressure from spot market participants, particularly institutions, suggests a potential supply squeeze that could further propel prices. The combination of high volatility and profitability historically associated with Bitcoin price movements implies that a significant price increase in the near future is plausible, especially in light of current market dynamics.

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