Woofun AI data shows that Bitcoin’s Sharpe Ratio has declined to approximately -20, marking the lowest reading since the 2022 bear market cycle. This metric, which evaluates returns relative to volatility against risk-free assets like 10-year U.S. Treasury bonds, indicates that investors have assumed higher risk while underperforming safer alternatives over the past 12 months.

Despite the negative indicator, Bitcoin trades near $63,723 with a 1.7% gain in the last 24 hours, though it remains down 28% year-to-date. Historical data reveals similar Sharpe Ratio levels at cycle bottoms in 2015, 2019, and 2022. On-chain metrics confirm long-term holders are maintaining significant BTC supply, while U.S. spot Bitcoin ETFs continue to attract institutional interest amid short-term volatility.