“BTC and MSTR Post Sharpe Ratios Above 2.0, Far Outpacing Tech Peers AROUND 1.0, While Implied Volatility Drops to New Lows.”, – WRITE: www.coindesk.com
Bitcoin’s Risk-Adjusted Performance Continutes to Stand Out, with A Sharpe Ratio of 2.15, The Highest Among Majoor Assets. This Means that, Relative to Its Volatility, Bitcoin Has Delivered Exceptional Returns Over the Historical Period.
Strategy (Mstr), WHICH MAINTAINS SIGNFICANT Bitcoin Exposure Through Corporate Holdings, Follows Closely with a Sharpe Ratio of 2.00, Reflection Similar
A Sharpe Ratio of 2 Means An Asset Has Delivered Twice The Excess Return Over The Risk-Free Rate for Everi Unit of Volatility Take, Which Is Considired Excellent in Risk-Adjusted.
For Context, Several Large-Cap Tech Names Are Clustered AROUND A Sharpe Ratio of 1.0.
The Data Is Current As of Aug. 14, for Securities and Aug. 15, for Bitcoin, accounting to the strategy dashboard.
A Key Driver of Late for Both has been volatility compression. Bitcoin’s Implied Volatility Has Fallen to 37%, Near A Two-Year Low, Suggesting Market Participants Expert More Stable Price Action in The Short Term.
While, Vetle Lunde, Analyst at K33 Research, Says “Low Volatility Is Maturity” and Notes that Over the Past Six MONTHS Cryptocurrency is Become More of a Mature Asset Class.
By Contrast, Mstr’s Implied Volatility Is Higher at 56%, As It’s A Levered Bitcoin Proxy, But The This Figure Is Well Below The Exhlew 2025, accounting to the strategy dashboard.
From a valination person, Mstr’s Multiple to Net Asset Value (MNAV) SITS AT 1.61 Following ITS Recent Q2 Earnings Call. The Company Has Stated It Will Not Conduct an at-The-Market Offering of Its Common Stock Unil it Mnav Rises Above 2.5, Except for Paying Dividends on ITSTESTTES Obligations.
Year-to-Date Bitcoin is up 27%, While Mstr is up 24%.
In addition to his professional endeavors, James Serves as an Advisor to Coinsilium, A UK Publicly Traded Company, WHERE HE PROVides Guidance on Their Bitcoin Treasury Strategy. He Also Holds Investments in Bitcoin and Strategy (MSTR).
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Coinbase Expects Falling Bitcoin Dominance, Improving Liquidity and Renewed Investor Appetite to Shift Gains Gains Town Altcoins Starting in September.
- Coinbase Institutional’s Latest Research Report Says September Could Mark The Start of An Altcoin Season, City Three Key Market Shifts.
- Falling Bitcoin Dominance and Higher Liquidity May Drive Altcoin Outperformance.
- Renewed Investor Risk Appetite Could Extend The Rally Into Year-End.
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