Bitcoin’s price recently surged past $87,372, reaching a new all-time high as market recovery gains momentum. Analysts at CryptoQuant point to historical patterns, indicating Bitcoin is now in a similar risk zone seen before notable market rallies in 2019, 2020, and 2022. This aligns with Bitcoin’s Sharpe Ratio slipping back towards the zero threshold, historically suggesting uncertainty and the early stages of a risk repricing period. 2019, 2020, and 2022 saw similar conditions precede significant multi-month trend shifts. While this metric alone doesn’t signal an immediate market bottom, it suggests potential for improved returns if volatility cools down. CryptoQuant reports that investors seeking asymmetric opportunities often find better conditions in low Sharpe environments compared to high Sharpe euphoric periods. However, the platform cautions against overconfident entries, as short-term noise might dominate until the Sharpe Ratio begins rising again.