Goldman Sachs: Bitcoin has risen over 40% this year, but gold outperforms Bitcoin in risk-adjusted returns

ChainCatcher news, according to CoinDesk, Goldman Sachs analysis shows that Bitcoin has risen over 40% this year, outperforming major stock indices, fixed income securities, gold, and oil. However, according to Goldman Sachs data, despite Bitcoin's strong performance, its volatility results in a return-to-risk ratio below 10%, far lower than gold's industry-leading level of nearly 20%.

Bitcoin's low risk-adjusted return validates its excessive volatility, making it unsuitable as a safe-haven asset similar to gold. This is also the reason why traditional institutions prefer to use arbitrage strategies to hedge against Bitcoin price fluctuations.