Today, the price of Bitcoin (BTC) has once again experienced a significant rise. According to the market data of the platform, the price of Bitcoin has exceeded US$64,000, reaching a maximum of US$64,400, with an intraday increase of 2.38%. This price increase not only made Bitcoin one of the best-performing cryptocurrencies of the day, but also once again proved its attractiveness as an investment asset in 2024.

According to the latest analysis report from New York Digital Investment Group (NYDIG), despite its high volatility, Bitcoin's return rate far exceeds that of other asset classes. Greg Cipolaro, global head of research at NYDIG, pointed out in the report that Bitcoin's returns are "different" and compared with other asset classes through the Sharpe Ratio. The Sharpe Ratio is an indicator used in the financial field to evaluate the performance of an asset relative to its risk, calculating the ratio of excess returns to the volatility of these returns. Data provided by Cipolaro shows that Bitcoin's Sharpe Ratio is higher than other asset classes in different time frames.

Cipolaro also mentioned that although gold's Sharpe ratio is slightly higher over the past 12 months, the difference between the two is very small and almost negligible. He also refuted the view of Goldman Sachs in its October 7 report, which stated that Bitcoin's rise is not enough to make up for its volatility. Cipolaro believes that the risks taken by Bitcoin investors are fully compensated in terms of returns.

Furthermore, Cipolaro stressed that while the Sharpe ratio is a useful tool for assessing risk-adjusted returns, absolute returns are key to meeting financial obligations, adding that the metric does not reflect all risks that investors may face, such as the risk of censorship or asset seizure.

Against this backdrop, the rise in Bitcoin’s price and its appeal as an investment asset have once again become the focus of market attention. Investors and analysts are closely watching Bitcoin’s next move and its impact on the entire cryptocurrency market.