Bitcoin’s Sharpe Ratio: Zero? What’s Next? 🤯

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Oh great, the Bitcoin Sharpe ratio is now basically zero. Because nothing says “market bottom” like a number that’s basically zero. 🤷‍♂️

Analyst I. Moreno says this is “maximum uncertainty” and “early risk repricing.” Sounds like a party I’d rather not attend. 🎉

Remember 2019, 2020, 2022? The ratio was “structurally depressed” then. Now it’s doing it again. Because nothing says “new trends” like being depressed. 😂

“This does not guarantee a bottom, but it does indicate that the quality of future returns is starting to improve, provided the market stabilizes, and volatility begins to normalize.”

So, no bottom guaranteed, but future returns might improve if the market “stabilizes.” Like, duh, that’s the only way it can improve. 🤡

Sharpe ratio measures return vs. risk. Near zero? That means Bitcoin’s returns are worse than its volatility. So, a “better investment setup”? Sounds like a bad idea. 🚨

Bitcoin Sharpe ratio could signal smart money

Low Sharpe ratios? That’s when “smart money” enters. Because nothing says “smart” like buying when everything’s going to hell. 🤡

Back in 2024, the ratio hit 50 when Bitcoin was at $73k. Now it’s near zero. What a rollercoaster. 🎢

Analyst cautions: trend recovery hasn’t happened. So, it’s not a bottom yet. But hey, maybe it’s just a temporary setback. 🤷‍♂️

“Bitcoin is not yet signaling trend recovery, but it is signaling that the risk-adjusted landscape is becoming more attractive for forward returns.”

Not a trend recovery, but the risk-adjusted landscape is “more attractive.” So, it’s like a “maybe” but not really. 🤔

Unusually large Bitcoin transfers mark historic week onchain

8% of Bitcoin moved in a week. That’s more than the number of people who actually understand this stuff. 🤯

This has only occurred twice in the past seven years, both during bear markets in December 2018 and March 2020. So, it’s “historic.” Or just a bad week. 🤷‍♂️

“This makes the latest drawdown one of the most significant onchain events in Bitcoin’s history,” commented Joe Burnett. So, it’s a big deal. But what’s the deal? 🤷‍♂️

In just 10 days, BTC dumped a whopping 23%, or over $24,000, bottoming out at around $82,000 on Friday. It has since recovered slightly, tapping $89,000 in late trading on Monday. That’s like losing your job and then getting a raise. 🤯

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2025-11-25 09:26