[Analysis: Bitcoin's 365-Day Sharpe Ratio Drops to Lowest Since 2022, Historically Corresponding to Bear Market Bottoms] BlockBeats News, July 6, according to CryptoQuant data, Bitcoin has fallen approximately 28% year-to-date, with its 365-day rolling Sharpe Ratio once dropping to around -21, the lowest level since the end of 2022, and it currently remains near -20. The Sharpe Ratio is used to measure an asset's risk-adjusted return performance. A negative value indicates that investors are taking on higher volatility risk, but actual returns are lower than risk-free assets (such as the 10-year U.S. Treasury bond). Against the current backdrop of a 4.45% U.S. Treasury yield, this indicator reflects a significant deterioration in Bitcoin's risk-return performance over the past year. However, CryptoQuant points out that, historically, when the Sharpe Ratio falls to such extreme negative levels, it often signals that market selling pressure is nearing exhaustion. Similar levels were observed near the bear market bottoms in 2015, 2019, and 2022, all of which were followed by a new Bitcoin rally cycle.