Bitcoin (BTC) Sharpe ratio until January 29, 2024

Bitcoin's Sharpe ratio in November 2022 was below that of the S&P500, reaching a value that was considered to be bad. This particular ratio gives investors an idea on how their investments perform on the long run, and is calculated by substracting risk-free rate from the expected return of a particular asset. The higher the Sharpe ratio, the more the extra risk is actually paying off - as returns are above-average. In the case of Bitcoin, the ratio was mostly between negative values or a value of one, which are considered to be "bad" or "acceptable or good". A value of zero means the asset in consideration is risk-free, which may be both good - as you are not losing out on money - or bad - as the extra risk taken may not be worth the effort.