#Bitcoin has historically exhibited high volatility or high standard deviation metrics, but upon examining its returns, many of them are disproportionately skewed to the positive side. This is evident from Bitcoin's Sharpe ratio, which stands at 0.96 from 2020 to early 2024 (the same period).
Even more indicative is the Sortino ratio, which, when calculated, only takes into account downside risk (standard deviation), providing investors with an idea of the downside risk they are taking to generate profits. Here, Bitcoin's Sortino ratio, at 1.86, nearly doubles the Sharpe ratio, indicating that a significant portion of the volatility has been directed towards the upside.
