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
A certain CEX had $1.104 billion in 24-hour trading volume, with XRP, BTC, and ETH ranking in the top three.
According to CoinGecko data, on April 1, a certain CEX saw trading volume of $1.104 billion within the past 24 hours. XRP, BTC, ETH, USDT, and ONT each ranked among the top five by trading volume. This trading-volume ranking shows that XRP had the largest trading volume, reaching $113.3 million.
GateNews5m ago
Why is the crypto market up today? The UAE is pushing for the reopening of the Strait of Hormuz, and Bitcoin is rebounding
Bitcoin and the cryptocurrency market rebounded on Wednesday after the United Arab Emirates urged the United Nations to use force to reopen the Strait of Hormuz, easing concerns about a war with Iran. The market reacted positively to signs of de-escalation and the U.S. troop withdrawal plan, with the price of Bitcoin rising by more than 1%.
GateNews6m ago
Bitcoin fell 23.8% in Q1 2026, marking the worst first-quarter performance since 2018
Bitcoin fell 23.8% in the first quarter of 2026, marking its worst performance since 2018. The decline was mainly driven by outflows from spot ETF fund flows and high inflation. Despite the near-term drop, analysts say long-term conviction in Bitcoin has not changed, and it’s important to watch shifts in the macro environment and incoming capital flows.
GateNews26m ago
The Bitcoin Fear Index has been at a 12-day low, and whales dominate or hint at a potential buying opportunity
The current Crypto Fear and Greed Index shows an “Extreme Fear” state, and investors’ sentiment is cautious. Despite a weak market, on-chain data indicates potential bottoming signs, with whales holding the upper hand and retail investors pulling back. Bitcoin may be facing a buying opportunity as the market gradually builds momentum, setting the stage for future gains.
GateNews33m ago
Bitcoin plunges 24% in the first quarter, its worst performance since 2018
In the first quarter of 2026, the price of Bitcoin fell 23.8%, marking its worst performance since 2018. Starting the year, the price dropped from $87,508 to $66,619, for a cumulative loss of 41.6%. Analysts believe that the main reasons include macroeconomic uncertainty and heightened geopolitical tensions in the Middle East. In addition, ETF outflows have further increased pressure. Despite near-term difficulties, long-term confidence remains solid, and institutional participation trends look positive. The market is watching how developments in the Middle East could affect Bitcoin and overall cryptocurrency market sentiment.
GateNews41m ago
BTC 15-minute up 0.50%: Whale fund inflows and ETF net inflows rebound driving an improvement in spot demand
From 06:30 to 06:45 (UTC) on April 1, 2026, BTC in the short-term period gained a +0.50% return. The price fluctuated within the range of 68,808.1 to 69,224.2 USDT, with an amplitude of 0.60%. During this abnormal movement, market trading volume significantly increased, overall activity rose, and both on-chain and exchange liquidity were greatly enhanced. Although the volatility was limited, market attention was notably heightened.
The main driving force behind this abnormal movement was: a large amount of whale funds began transferring to exchanges. The proportion of whale wallets transferring funds to exchanges sharply increased from 0.34 in January to 0.79 on March 28,
GateNews49m ago
