Bitcoin's Sharpe Ratio Dives to Historic Bear Market Levels, Investors Face High Risk Without Adequate Returns

Bitcoin's Sharpe ratio has moved into a historical zone typically seen during late bear markets, indicating high risk without adequate compensation. This suggests that the balance between risk and reward is becoming increasingly extreme. The ratio is best used contrarian, not as a timing tool, as it can coincide with phases where long-term opportunities form, even if prices struggle in the short term.