Bitcoin's February Challenges

Bitcoin Faces Challenges with Risk-Adjusted Returns

According to information from Ecoinometrics, Bitcoin experienced notable difficulties in February, as evidenced by a decline in its risk-adjusted returns. This measure assesses how profitable an asset is relative to its price fluctuations, with a higher ratio indicating robust returns for less volatility.

Comparison with Traditional Assets

Looking back over the past year, Bitcoin's overall returns were on par with those of gold, which is commonly viewed as a safe-haven investment. However, when factoring in risk, the behavior of Bitcoin appears to mirror that of a major stock index.