Data: Bitcoin Sharpe Ratio briefly falls below -20, extreme pessimism may signal bottom formation
According to ChainCatcher, CryptoQuant analyst Darkfost pointed out that Bitcoin's Sharpe ratio has once again entered the extreme negative value zone, dropping below -20 before rebounding slightly. The Sharpe ratio is used to measure the relationship between investment risk and return; a negative value indicates that the current risk is high relative to returns. This aligns with Bitcoin posting losses for the third consecutive quarter (the latest quarterly decline was 16.1%).
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