Bitcoin’s risk adjusted returns have deteriorated sharply, with the Sharpe ratio falling into negative territory similar to the 2018–2019 and 2022 market downturns.
Despite a pullback from recent highs, volatility remains elevated, suggesting the current market is repricing risk rather than signaling a clear bottom.
Historically, negative Sharpe ratios can persist for extended periods, indicating that risk reward conditions remain unfavorable ahead of any potential trend reversal.
Welcome to CoinRank Daily Data Report. In this column series, CoinRank will provide important daily cryptocurrency data news, allowing readers to quickly understand the latest developments in the cryptocurrency market.
PERPETUAL PREFERRED EQUITY OFFERS BLUEPRINT TO EASE STRATEGY’S LONG DATED DEBT RISK
Bitcoin treasury firm Strive is using perpetual preferred equity to retire convertible debt, a structure that could provide a reference framework for Strategy as it manages more than $8 billion in outstanding leverage.
Strive priced its Variable Rate Series A Perpetual Preferred Stock SATA at $90 per share, upsizing the follow on offering beyond the initially announced $150 million to allow issuance of up to 2.25 million shares through a mix of public issuance and privately negotiated debt exchanges.
The company said proceeds will be used to pay down Semler Scientific’s 4.25% Convertible Senior Notes due 2030, with roughly $90 million of principal expected to be exchanged directly for newly issued SATA shares.
Unlike traditional refinancing, the transaction converts fixed maturity debt into perpetual preferred equity carrying a variable dividend currently set at 12.25%, with no maturity or conversion feature, reducing refinancing risk and improving reported leverage metrics.
Strategy has approximately $8.3 billion in convertible notes outstanding, including a $3 billion tranche due June 2028 with a $672.40 conversion price, which analysts say could potentially be addressed using a similar preferred equity approach.
SOLANA SHIFTS FROM SPECULATIVE HYPE TOWARD FINANCIAL INFRASTRUCTURE FOCUS
Solana’s latest development phase is increasingly centered on financial infrastructure rather than speculative applications, according to Backpack CEO Armani Ferrante.
Ferrante said the Solana ecosystem has spent the past year refocusing on decentralized finance, trading and payments after earlier cycles dominated by NFTs, gaming and social tokens.
He described the shift as a sign of network maturity, with Solana positioning itself as a high throughput onchain settlement and trading layer, sometimes referred to as an emerging “internet capital markets” model.
Ferrante noted that while crypto native sentiment remains cautious, institutional interest in areas such as tokenization, stablecoins and onchain settlement has strengthened.
He emphasized that broader adoption will depend on integration with regulatory frameworks, arguing that compliance and legal clarity are prerequisites as blockchains move closer to real world financial infrastructure.
BITCOIN FALLS BELOW $88,000 AS MACRO RISK AND POSITIONING PRESSURE MARKETS
Bitcoin slipped below $88,000 in thin weekend trading, extending a weeklong pullback amid macro uncertainty and fragile market sentiment.
BTC traded around $87,800 in U.S. afternoon hours, down roughly 2% over 24 hours, while ether and other major tokens posted losses of between 3% and 5%.
The move triggered $224 million in liquidations over the past 24 hours, led by bitcoin and ether futures, reflecting continued leverage unwinds following recent volatility.
Traders are closely watching potential Japanese yen intervention, U.S. political uncertainty around a possible government shutdown, and a heavy week of major technology earnings.
On prediction market Polymarket, traders are currently pricing a 76% probability of a U.S. government shutdown by the end of the month.
FED RATE DECISION SEEN AS STEADY, POWELL’S GUIDANCE EXPECTED TO DRIVE MARKETS
The Federal Reserve is widely expected to keep interest rates unchanged at its upcoming meeting, with attention focused on Chair Jerome Powell’s post meeting press conference.
CME FedWatch data indicates a roughly 96% probability that rates will remain in the 3.5% to 3.75% range, following three consecutive quarter point cuts last year.
Markets are assessing whether the pause signals a hawkish stance, emphasizing inflation risks, or a dovish pause that leaves room for rate cuts later in the year.
Analysts say Powell’s commentary on inflation, financial conditions, and policy uncertainty could influence both the U.S. dollar and risk assets such as bitcoin.
Powell may also face questions related to housing affordability policies, tariffs and recent bond market volatility, factors that could contribute to near term market swings.
〈CoinRank Daily Data Report (1/26)｜Bitcoin Risk-Reward Deteriorates, Echoing 2022 Market Conditions〉這篇文章最早發佈於《CoinRank》。
