Bitcoin's Continued Outperformance in 2024 Highlights Investment Benefits

According to BlockBeats, on October 2, Matrixport released its daily chart report, highlighting the ongoing academic discussions on how Bitcoin enhances investors' Sharpe ratios, improves portfolio diversification, and reduces overall volatility for institutional investors. Various studies have confirmed the benefits of including Bitcoin in investment portfolios. However, a more straightforward approach is to emphasize Bitcoin's consistent outperformance compared to other assets. In 2024, this trend continues, with Bitcoin delivering a year-to-date return exceeding 53%, providing substantial returns for investors. The Sharpe ratio is a crucial financial metric used to measure risk-adjusted returns of an investment. Introduced by Nobel laureate William Sharpe, it aims to help investors evaluate portfolio performance. A high Sharpe ratio indicates that the portfolio has achieved higher excess returns for the risk taken, generally considered a sign of good performance. Conversely, a low Sharpe ratio may suggest that the portfolio's returns have not adequately compensated for the risks undertaken.