Bitcoin Performance
| BTC Crypto | USD 66,317 2,102 3.27% |
The crypto shows a Beta (market volatility) of 0.44, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, Bitcoin's returns are expected to increase less than the market. However, during the bear market, the loss of holding Bitcoin is expected to be smaller as well.
Risk-Adjusted Performance
17 of 100
Weak | Strong |
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Bitcoin exhibited solid returns over the last few months and may actually be approaching a breakup point. ...more
1 | Satoshi Nakamoto honored with US flag ceremony by anti-crypto Senator Warren - Crypto Briefing | 02/15/2024 |
2 | Nigerias SEC Updates Guidelines for Crypto Firms in Bid to Stop Criminal Activity Report - CoinDesk | 03/07/2024 |
3 | Honduras Ratchets Up Battle With Crypto-Libertarian Investors, Rejects World Bank Court - The Intercept | 03/19/2024 |
4 | The Rise Of Cryptos Billion Dollar Zombies - Forbes | 03/27/2024 |
Bitcoin |
Bitcoin Relative Risk vs. Return Landscape
If you would invest 4,212,402 in Bitcoin on January 26, 2024 and sell it today you would earn a total of 2,419,335 from holding Bitcoin or generate 57.43% return on investment over 90 days. Bitcoin is generating 0.7687% of daily returns assuming 3.4409% volatility of returns over the 90 days investment horizon. Simply put, 30% of all crypto coins have less volatile historical return distribution than Bitcoin, and 85% 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 = 0.2234
| Best Portfolio | Best Equity | |||
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
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Estimated Market Risk
| 3.44 actual daily | 30 70% of assets are more volatile |
Expected Return
| 0.77 actual daily | 15 85% of assets have higher returns |
Risk-Adjusted Return
| 0.22 actual daily | 17 83% of assets perform better |
Based on monthly moving average Bitcoin is performing at about 17% of its full potential. 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 it to a well-diversified portfolio.
About Bitcoin Performance
To evaluate Bitcoin Crypto Coin as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Bitcoin generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Bitcoin Crypto Coin's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Bitcoin market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Bitcoin's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.Bitcoin is peer-to-peer digital currency powered by the Blockchain technology.| Bitcoin appears to be risky and price may revert if volatility continues |
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 tightly coupled with the direction of predictive economic indicators such as signals in board of governors. Note that the Bitcoin information on this page should be used as a complementary analysis to other Bitcoin's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.