Bitcoin Performance
| BTC Crypto | USD 88,220 389.49 0.44% |
The crypto shows a Beta (market volatility) of -0.12, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Bitcoin are expected to decrease at a much lower rate. During the bear market, Bitcoin is likely to outperform the market.
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Over the last 90 days Bitcoin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for Bitcoin shareholders. ...more
Bitcoin |
Bitcoin Relative Risk vs. Return Landscape
If you would invest 9,751,092 in Bitcoin on November 28, 2024 and sell it today you would lose (929,115) from holding Bitcoin or give up 9.53% of portfolio value over 90 days. Bitcoin is producing return of less than zero assuming 2.3717% volatility of returns over the 90 days investment horizon. Simply put, 21% of all crypto coins have less volatile historical return distribution than Bitcoin, and 99% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
| Risk |
Bitcoin Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Bitcoin's investment risk. Standard deviation is the most common way to measure market volatility of crypto coins, such as Bitcoin, and traders can use it to determine the average amount a Bitcoin's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0552
| Best Portfolio | Best Equity | |||
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | BTC |
Estimated Market Risk
| 2.37 actual daily | 21 79% of assets are more volatile |
Expected Return
| -0.13 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.06 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Bitcoin is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Bitcoin by adding Bitcoin to a well-diversified portfolio.
About Bitcoin Performance
By analyzing Bitcoin's fundamental ratios, stakeholders can gain valuable insights into Bitcoin's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Bitcoin has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Bitcoin has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Bitcoin is peer-to-peer digital currency powered by the Blockchain technology.| Bitcoin generated a negative expected return over the last 90 days |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bitcoin. Also, note that the market value of any cryptocurrency could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.