Bitcoin Sharpe Ratio Hits Bear Market Lows At Negative 10

The Bitcoin Sharpe ratio — a measure of risk-adjusted return — has fallen to -10, its lowest level since March 2023, CryptoQuant analyst Darkfost said on X on Saturday. "The Sharpe ratio has just entered a particularly interesting zone, one that has historically aligned with the final phases of bear markets," they wrote, adding that this is not a sign the bear market is over "but rather that we are approaching a point where the risk-to-reward profile is becoming extreme." The ratio, which indicates how much return an investor can expect for each unit of risk, was lower in late 2022–early 2023 and late 2018–early 2019 — periods that marked the depths of previous bear cycles.

It fell to zero in November 2025 when BTC prices hit a local low of $82,000.

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