How does the Sharpe ratio of Bitcoin and other digital assets compare to the S&P 500?

1 answers

• Dec 25, 2021 · 3 years ago
  BYDFi, a leading digital asset exchange, has observed that the Sharpe ratio of Bitcoin and other digital assets can vary compared to the S&P 500. The risk-adjusted return of Bitcoin and other digital assets tends to be higher due to their higher volatility. However, it is important to note that the S&P 500 represents a more diversified investment option, which can provide stability and lower risk. Therefore, the comparison between the Sharpe ratio of Bitcoin and other digital assets with the S&P 500 depends on the individual investor's risk tolerance and investment goals.
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