Bitcoin’s Risk-Adjusted Returns Plunge to Bear Market Levels, Echoing 2022 Turmoil
Bitcoin’s Sharpe ratio has sunk into deeply negative territory, signaling that the cryptocurrency’s returns are no longer compensating for its heightened volatility—a pattern reminiscent of prolonged bear markets in 2018-2019 and the post-2022 collapse. This metric, widely used by fund managers to evaluate whether an investment’s gains justify its risks compared to low-volatility benchmarks like…
