The Bitcoin Sharpe ratio, indicating risk/reward potential, is in negative territory, signaling the possible end of bear markets, per CryptoQuant analyst Darkfost. The ratio has dropped to -10, its lowest since March 2023, suggesting high risk relative to returns. Analysts caution a true market reversal may be months away.

Historical data shows the ratio was lower during previous bear market cycles, hitting zero in November 2025 when BTC prices fell to $82,000. Despite the negative ratio, a true reversal may take time. BTC fell to $60,000 but rebounded to $71,000. Sentiment remains bearish with a 44% drop from the October peak.

Read more at Cointelegraph: Bitcoin Sharpe Ratio Hits Bear Market Lows At Negative 10