I just saw that Bitcoin's Sharpe Ratio is at extremely negative levels, around -10.


For those who don't know, this indicator measures the risk-reward relationship, and when it drops so low, it means we're in very dangerous territory.

The interesting thing is that these negative Sharpe Ratio levels are only seen during the worst moments of bear markets.
It's as if the market is screaming that the risk is disproportionate compared to what you could gain.
CryptoQuant data shows that we've reached similar points in previous crashes.

I'm not saying it's the bottom, but the Sharpe Ratio at these numbers is definitely a warning sign.
Many traders are reevaluating their positions because when this ratio is so negative, volatility eats up any potential gains.
Something to keep in mind if you're thinking about taking risks now.
BTC4.14%
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