Fidelity Global Macro Director: Bitcoin Sharpe Ratio has reached +0.97 in the past five years, higher than the S&P 500 Index

Fidelity Global Macro Director Jurrien Timmer said that the Bitcoin Sharpe Ratio (Shape Ratio) of +0.97 over the past five years is noteworthy, which exceeds the S&P 500 Index SPX (+0.74) and the U.S. 60/40 Portfolio (+0.73) and other investment categories, indicating that despite the turmoil in the digital asset market, Bitcoin's risk-return over five years is very balanced, and the returns obtained are generally consistent with the risks taken by investors. The Sharpe ratio, also known as the Sharpe index, aims to calculate how much excess return a portfolio will generate for each unit of total risk it bears. The ratio is based on the concept of Capital Allocation Line (CAL) and is the most common measurement ratio in the market. When the assets in the portfolio are all risky assets, the Sharpe ratio is applied. The Sharpe Index represents how much excess return investors can get for every extra point of risk they bear; if it is greater than 1, it means that the fund's return rate is higher than the volatility risk; if it is less than 1, it means that the fund's operational risk is greater than its return rate.