Bitcoin 365-Day Sharpe Ratio Hits 2022 Low Near -21 on July 6, Historically Signaling Trend Reversal

According to CryptoQuant data reported by BlockBeats on July 6, Bitcoin's 365-day rolling Sharpe Ratio dropped to near -21, marking its lowest level since late 2022, while the year-to-date decline has reached approximately 28%. The negative reading indicates that investors are bearing heightened volatility risk with returns falling below risk-free assets such as U.S. Treasury bonds.

Historically, such extreme negative Sharpe Ratio levels have coincided with bear market bottoms in 2015, 2019, and 2022, often preceding major rallies in Bitcoin.