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CoinDesk·3 min read·hard

Bitcoin's Sharpe Ratio slides to lowest since 2022. Here's what it means.

O
Omkar Godbole
Bitcoin's Sharpe Ratio slides to lowest since 2022. Here's what it means.
AI Summary

Bitcoin's 365-day rolling Sharpe Ratio has dropped to -21, its lowest level since 2022, indicating poor risk-adjusted returns for investors. This metric suggests that current market volatility is not being adequately compensated by price gains compared to risk-free assets.

The Sharpe Ratio is the gold standard for measuring risk-adjusted returns and was developed by Nobel Prize-winning economist William F. Sharpe .

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Bitcoin's Sharpe Ratio slides to lowest since 2022. Here's what it means. — Headlinne — headlinne