PANews January 23 News, according to CoinDesk, CryptoQuant data shows that Bitcoin’s Sharpe ratio has dipped into negative territory, reaching levels seen during market crashes in 2018-2019 and 2022, indicating poor risk-adjusted performance. The current high volatility is not matching weak returns. This indicator measures the ratio of excess return over the risk-free rate to volatility. Turning negative means that the returns from holding Bitcoin are no longer sufficient to compensate for its sharp price fluctuations. Although Bitcoin’s price has fallen from the October 2025 peak of over $120,000 to around $90,000, market volatility remains high.
Historical data suggests that a negative Sharpe ratio can persist for several months after prices stop declining sharply, such as during the long bear markets at the end of 2018 and in 2022. Analysts note that this ratio is not an exact bottom indicator but shows that risk and return have reset to levels seen before major market rallies. The market is usually focused on whether this ratio can sustain a rebound into positive territory, which typically indicates returns surpassing volatility and aligns with the start of a new bull market. Currently, there are no signs of such a trend reversal.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
CFTC clarifies cryptocurrency margin rules: BTC and ETH capital deduction rate of 20%, permitting investment in the derivatives market
The U.S. Commodity Futures Trading Commission (CFTC) recently released an FAQ clarifying the rules for using cryptocurrencies as margin in derivatives markets, specifically setting capital deduction rates of 20% for Bitcoin and Ethereum and 2% for stablecoins. The pilot program will be limited to three coin types in the first three months, after which it will expand to additional cryptocurrencies and relax reporting requirements. Qualifying crypto assets may be used as margin, marking a gradual acceptance of blockchain assets within the U.S. financial system.
動區BlockTempo30m ago
Major CEX and DEX funding rates fully turned negative, BTC down 1.93%, ETH down 2.18%
On March 22, Bitcoin reported $69,275.33, down 1.93% in 24 hours; Ethereum reported $2,103.95, down 2.18%. The market is broadly bearish, with shorts dominating. Funding rates are universally negative, indicating that shorts need to pay fees to longs.
GateNews55m ago
Polymarket predicts that the probability of Bitcoin falling to $65,000 in March has increased to 49%.
Gate News, on March 22, as Bitcoin briefly dropped below $69,000, the prediction probability of "Bitcoin falls to $65,000 in March" on the Polymarket prediction market rose to 49%. Additionally, the probability of predicting Bitcoin falling to $60,000 is 16%, and the probability of predicting it rising to $80,000 is 12%.
GateNews1h ago
Bitcoin Options Signal Concern Even as ETF Outflows Remain Relatively Low
Bitcoin price (BTC) maintained a sideways trend around the 70,000 USD level during Friday's trading session, after failing to reclaim the previous 75,000 USD milestone. This movement coincides with two consecutive sessions recording net capital outflows from U.S. spot Bitcoin ETF funds, thereby reversing the trend.
TapChiBitcoin1h ago
Bitcoin Mining Difficulty Adjusts Down 7.76% to 133.79T, Creating Second-Largest Decline This Year
Bitcoin mining difficulty declined by 7.76% to 133.79 T on March 21, marking the second-largest drop this year. JPMorgan Chase analysts forecast that Bitcoin mining costs have fallen to $77,000, still above spot prices. An increasing number of mining companies are redirecting infrastructure toward AI computing power. Core Scientific plans to sell its Bitcoin holdings in 2026 to fund AI expansion, while Bitdeer has liquidated its Bitcoin position. Multiple companies are formulating diversification strategies.
GateNews1h ago
