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Bitcoin’s (BTC) performance continues to raise eyebrows as fresh analysis debunks claims that its volatility outweighs its returns. 

According to Greg Cipolaro, Global Head of Research at NYDIG, despite assertions from traditional finance circles that Bitcoin's gains don’t justify its fluctuations, a more comprehensive analysis of Sharpe ratios paints a different picture. 

Over various timeframes, Bitcoin consistently ranks as one of the top-performing assets when adjusting for risk, even outpacing gold in some periods, according to Cipolaro.

The Sharpe ratio, which measures risk-adjusted returns, shows Bitcoin holding its ground against most traditional assets. 

While gold marginally surpassed Bitcoin in the past 12 months with a ratio of 1.94 compared to Bitcoin’s 1.92, experts argue this difference is insignificant. 

This new analysis highlights that Bitcoin’s price volatility is more than compensated by its robust returns, making it a compelling choice for long-term investors.

In market developments, Bitcoin saw a 2.2% drop this week, continuing to trade within a tight range. Cipolaro stated that hopes that the Federal Reserve’s rate cuts and China’s stimulus package would push Bitcoin out of its current range have yet to materialize. 

Concerns over U.S. government-held Bitcoin, including coins recovered from the Silk Road and Bitfinex cases, continue to circulate, but market watchers believe any large-scale sell-offs are unlikely in the near term. The focus now shifts to potential regulatory changes, as U.S. elections loom, with implications for Bitcoin and the broader crypto market.

According to the CoinMarketCap data, BTC has crossed the $64,000 threshold after witnessing a 2.13% surge in 24 hours.