Bitcoin Alpha and Beta Analysis
| BTC Crypto | USD 66,317 1,338 2.06% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Bitcoin. It also helps investors analyze the systematic and unsystematic risks associated with investing in Bitcoin over a specified time horizon. Remember, high Bitcoin's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Beta 0.44 | Alpha 0.78 | Risk 3.39 | Sharpe Ratio 0.23 | Expected Return 0.78 |
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Bitcoin |
Bitcoin Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Bitcoin market risk premium is the additional return an investor will receive from holding Bitcoin long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Bitcoin. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Bitcoin's performance over market.| α | 0.78 | β | 0.44 |
Bitcoin Price Momentum Analysis
Bitcoin Market Price Analysis
Market price analysis indicators help investors to evaluate how Bitcoin crypto coin reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Bitcoin shares will generate the highest return on investment. By understating and applying Bitcoin crypto coin market price indicators, traders can identify Bitcoin position entry and exit signals to maximize returns.
Bitcoin Return and Market Media
The median price of Bitcoin for the period between Thu, Jan 25, 2024 and Wed, Apr 24, 2024 is 63804.11 with a coefficient of variation of 17.88. The daily time series for the period is distributed with a sample standard deviation of 10526.2, arithmetic mean of 58865.24, and mean deviation of 9458.37. The Crypto received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Crypto Is Suddenly Braced For A Huge China Earthquake After Bitcoin, Ethereum, XRP And Solana Price Surge - Forbes | 01/30/2024 |
2 | Satoshi Nakamoto honored with US flag ceremony by anti-crypto Senator Warren - Crypto Briefing | 02/15/2024 |
3 | Nigerias SEC Updates Guidelines for Crypto Firms in Bid to Stop Criminal Activity Report - CoinDesk | 03/07/2024 |
4 | Honduras Ratchets Up Battle With Crypto-Libertarian Investors, Rejects World Bank Court - The Intercept | 03/19/2024 |
5 | The Rise Of Cryptos Billion Dollar Zombies - Forbes | 03/27/2024 |
About Bitcoin Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Bitcoin or other cryptos. Alpha measures the amount that position in Bitcoin has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Some cryptocurrency investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. However, unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Bitcoin in the overall investment community. So, suppose investors can accurately measure the crypto's market sentiment. In that case, they can use it for their benefit. For example, some tools provided by cryptocurrency exchanges to gauge market sentiment could be utilized to time the market in a somewhat predictable way.
Build Portfolio with Bitcoin
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Check out Bitcoin Backtesting, Portfolio Optimization, Bitcoin Correlation, Cryptocurrency Center, Bitcoin Volatility, Bitcoin History and analyze Bitcoin Performance. 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Bitcoin technical crypto coin analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, crypto market cycles, or different charting patterns.