Bitcoin Alpha and Beta Analysis
| BTC Crypto | USD 88,241 169.48 0.19% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Bitcoin. It also helps investors analyze the systematic and unsystematic risks associated with investing in Bitcoin over a specified time horizon. Remember, high Bitcoin's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Beta 0.24 | Alpha (0.41) | Risk 2.26 | Sharpe Ratio (0.21) | Expected Return (0.48) |
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Bitcoin |
Bitcoin Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Bitcoin market risk premium is the additional return an investor will receive from holding Bitcoin long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Bitcoin. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Bitcoin's performance over market.| α | -0.41 | β | 0.24 |
Bitcoin Price Momentum Analysis
Bitcoin Market Price Analysis
Market price analysis indicators help investors to evaluate how Bitcoin crypto coin reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Bitcoin shares will generate the highest return on investment. By understating and applying Bitcoin crypto coin market price indicators, traders can identify Bitcoin position entry and exit signals to maximize returns.
Bitcoin Return and Market Media
The median price of Bitcoin for the period between Thu, Oct 2, 2025 and Wed, Dec 31, 2025 is 99644.14 with a coefficient of variation of 11.82. The daily time series for the period is distributed with a sample standard deviation of 11832.08, arithmetic mean of 100096.79, and mean deviation of 10544.99. The Crypto received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Ship has sailed Ripple CEO Brad Garlinghouse says US wont return to hostile crypto climate under Gensler - theblock.co | 10/15/2025 |
2 | Bitcoin Price, Ethereum Drop. How Powell Took Down the Crypto Rally. - Barrons | 10/30/2025 |
3 | How Crypto Could Trigger the Next Financial Crisis - The Atlantic | 11/17/2025 |
4 | Teachers union AFT slams crypto market bill, warns of profound risks for Americas retirement plans - CNBC | 12/09/2025 |
5 | Exclusive Jump Accused of Contributing to Collapse of Terraform, Do Kwons Crypto Empire - wsj.com | 12/18/2025 |
6 | Crypto investors got almost everything they wanted in 2025, yet prices still fell. Theyre looking for more help from the White House in 2026. - MarketWatch | 12/24/2025 |
About Bitcoin Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Bitcoin or other cryptos. Alpha measures the amount that position in Bitcoin has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Bitcoin Investors Sentiment
The influence of Bitcoin's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Bitcoin. The overall investor sentiment generally increases the direction of a crypto movement in a one-year investment horizon. However, the impact of investor sentiment on the entire crypto market does not have solid backing from leading economists and market statisticians.
Investor biases related to Bitcoin's public news can be used to forecast risks associated with an investment in Bitcoin. The trend in average sentiment can be used to explain how an investor holding Bitcoin can time the market purely based on public headlines and social activities around Bitcoin. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Bitcoin's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Bitcoin's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Bitcoin's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Bitcoin.
Some cryptocurrency investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. However, unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Bitcoin in the overall investment community. So, suppose investors can accurately measure the crypto's market sentiment. In that case, they can use it for their benefit. For example, some tools provided by cryptocurrency exchanges to gauge market sentiment could be utilized to time the market in a somewhat predictable way.
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Check out Bitcoin Backtesting, Portfolio Optimization, Bitcoin Correlation, Cryptocurrency Center, Bitcoin Volatility, Bitcoin History and analyze Bitcoin Performance. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Bitcoin technical crypto coin analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, crypto market cycles, or different charting patterns.