What Bitcoin’s Sharpe Ratio Means for Investors
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The Sharpe ratio, which measures risk vs. reward, has entered deep negative territory (-10)—a level seen near the ends of past bear markets.
For investors, this means:
Risk is still high relative to potential returns
BTC could continue falling before a true rebound
Historically, this stage signals that a market turning point may be near
In short: caution is still needed, but the risk/reward dynamics are becoming extreme, making it an important zone to watch.