📈 Bitcoin Sharpe Ratio is a critical tool for understanding investment risk! This indicator evaluates risk and return based on the relationship between the return and standard deviation of the investment. A high Sharpe Ratio signals positive return for risk.

- In the context of Bitcoin, the Sharpe Ratio provides comparative performance analysis with other asset classes.

- A Sharpe Ratio above 40 indicates a positive return on risk for the past year, while a value below -20 indicates a high-risk period.

- The current Bitcoin Sharpe Ratio indicates that it has entered a high-risk period for new investors. The risk level has increased due to the price increase exceeding the 2021 peak.

- This measurement, which is especially valuable for institutional investors, provides the basis for a safer course in the cryptocurrency market.

As a result, the Bitcoin Sharpe Ratio is vital to the understanding of risk and return and helps investors make informed decisions.