Bitcoin's Sharpe Ratio Drops Below -20 on July 6, Analyst Suggests Bottom-Building Phase Ahead

BTC0.14%
According to CryptoQuant analyst Darkfost, Bitcoin's Sharpe ratio fell below -20 on July 6, indicating an extreme pessimism phase. The metric, which measures risk-adjusted returns, turned deeply negative as Bitcoin posted its third consecutive quarterly loss with the latest quarter down 16.1%. Historically, such extreme periods have preceded bottom-building phases lasting weeks to months, followed by price recovery, with current data suggesting Bitcoin may be approaching this inflection point.
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