Bitcoin Sharpe Ratio Falls to Lowest Since March 2023

CryptoQuant analyst Darkfost stated that the Sharpe ratio of Bitcoin is already in the negative zone, currently at -10, the lowest level since March 2023, which is in line with the characteristics of the end of a bear market, but does not mean the end of the bear market. Looking back at historical data, the Sharpe ratio has fallen to low points from the end of 2022 to early 2023 and from the end of 2018 to early 2019, both of which were low points in bear market cycles. Analysts point out that a negative Sharpe ratio usually indicates that a market turning point is approaching.