Bitcoin returns and risks are severely mismatched, recreating the market characteristics of 2022\nThe Sharpe ratio of Bitcoin has fallen sharply into negative territory, reaching levels only seen during the major drawdowns of 2018–2019 and after the market crash in 2022. A negative Sharpe ratio indicates poor risk-adjusted performance: high price volatility and weak or even negative returns. This state may persist even after prices stop declining significantly.\nFrom historical experience, meaningful trend reversals in Bitcoin often do not occur when the Sharpe ratio first drops below zero, but rather after it has continued to rise and re-enter positive territory. Even though the current Bitcoin price still hovers above USD, the overall market still exhibits high volatility and low returns.