Bitcoin (BTC) price breaches $100,000 as risk-on and risk-off environments drive demand

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

Bitcoin (BTC) price touched the $100,000 mark on May 7 for the first time since January, setting the stage for a potential new all-time high above $110,000 in May. According to crypto custody service provider Bitcoin Suisse, BTC’s bullish momentum is linked to its ability to perform well in both risk-on and risk-off environments since the US presidential elections.

Data from its “Industry Rollup” report shows that Bitcoin had a 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.

“It's noteworthy that Bitcoin has managed to generate a positive net return despite the market's risk-off and risk-on phases, which is a testament to its resilience and ability to adapt to different economic climates,” said Bitcoin Suisse head of research Dominic Weiben.

Earlier in May, Fidelity Digital Assets' Q2 2025 Signals Report stated that Bitcoin is gearing up for the next leg of an “acceleration phase.”

According to Fidelity analyst Zack Wainwright, Bitcoin's historical movements indicate that it usually enters into explosive price surges from "high volatility and high profit."

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” signals aggressive buying pressure, driven by factors such as institutional interest and spot Bitcoin ETF inflows, i.e., over $4.5 billion spot inflows since April 1.

The structural change in demand and Bitcoin’s strong Sharpe ratio could enable it to capitalize on the current market conditions. As corporations and institutions are pouring money into Bitcoin, a supply squeeze may drive prices past $110,000 in May.