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Bitcoin heads down below $10,000 for the umpteenth time

Daniel Phillips


Bitcoin is again swimming in a sea of red, after losing 0.72% in the last 24 hours amidst an overall market downturn. The cryptocurrency has seen its value fall to $9,961, down from $10,036 this time yesterday.

This is not the first time Bitcoin has fallen through the psychological $10,000 mark. Bitcoin has continued to flip above and below it since early August.

The loss continues what has been a punishing Q3 for Bitcoin holders, since BTC has experienced losses across the 24 hour, 7 day, 1 month and 3-month timescales. However, long-term holders are likely less concerned, since the cryptocurrency is up 166% since the start of the year, eclipsing most other cryptocurrencies in terms of growth.

Looking even further back, the current price is even more positive. Those holding BTC for the last three years, are up more than 1,500%.

And this is represented by Bitcoin's high Sharpe ratio, which currently sits at an impressive 3.18. As a measure of risk-adjusted return, the Sharpe ratio indicates the returns you can expect to receive in relation to the volatility of an asset. With a Sharpe ratio of over 3, Bitcoin has an excellent risk to reward profile.

So, although Bitcoin is down almost 1%, it is still faring better than most other cryptocurrencies in the top 10 by market capitalization, both today—many other coins are down even more—and in the long run.