Bitcoin (BTC) and MicroStrategy (MSTR) have demonstrated exceptional risk-adjusted returns amid declining volatility, with BTC's Sharpe ratio at 2.15 and MSTR at 2.00. This performance outstrips that of major tech stocks, which average around a 1.0 Sharpe ratio. As of mid-August 2025, Bitcoin's implied volatility is near a two-year low at 37%, indicating a shift towards more stable price action. MSTR, serving as a leveraged proxy for Bitcoin, has seen its volatility decline from previous highs. Notably, Bitcoin has appreciated 27% year-to-date, while MSTR is up 24%. These figures suggest a growing maturity in Bitcoin as an asset class, with many large-cap companies exhibiting greater volatility than Bitcoin itself recently. This trend raises the profile of both Bitcoin and MSTR as strong investment options amidst a changing market landscape.

Source 🔗