Is Bitcoin’s $87K Surge a Signal of Glory or Just a Dead Cat Bounce? 🤔

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Ah, Bitcoin (BTC)-that mysterious creature, elusive yet ever so tempting. A rare bullish signal flickers like a beacon in the night, as multiple metrics boldly switch to “green.” 🍀

Key Points to Ponder:

  • Bitcoin’s price metrics are offering a multiyear opportunity, but will it last, or will it be just another wild ride?

  • It may not guarantee that the BTC bottom is in, but hey, the odds for buyers are looking more appetizing than before. Who’s hungry for some risk? 😏

  • Data is starting to look suspiciously like the end of the 2022 bear market. Déjà vu, anyone?

Data from the ever-watchful CryptoQuant on-chain analytics platform reveals Bitcoin’s Sharpe Ratio has plummeted to new lows. 📉

Bitcoin’s Sharpe Ratio: A Glimmer of Hope for Bulls 🐂

Bitcoin is now more attractive as a bet (in terms of risk vs. reward) than at any time since mid-2023. Who knew we’d see the day? The Sharpe Ratio-our dear old economic companion-is now in the “green zone” below zero for the first time since June. 💚

“We’re entering the same zone seen in 2019, 2020, and 2022, where the Sharpe Ratio spent time in the doldrums before new trends emerged,” said CryptoQuant’s MorenoDV, as if we haven’t seen this script before. 🤦‍♂️

“This does not guarantee a bottom, but it does indicate that future returns might actually be worth something, assuming the market finds its balance and volatility takes a nap.”

So, brace yourself: The Sharpe Ratio might continue its downward spiral into negative territory before it bounces back. Oh, joy. It last hit a long-term bottom in November 2022, right before the end of the last bear market. Timing is everything, right? 🤷‍♂️

Moreno cautioned that we must wait for a reversal before we can breathe easy. That’s the fun part of crypto, folks-always a cliffhanger! 😅

“Bitcoin isn’t signaling a trend recovery yet, but it’s whispering that the risk-adjusted landscape could be looking better for future gains. Maybe.”

Bitcoin Heater Returns to 2022… Or Is It Just Warm? 🔥

Elsewhere, another Bitcoin price metric is also pointing toward a hopeful return to greener pastures. The Bitcoin Heater-yes, you read that correctly-is now in the green once more. 😲

Created by Capriole Investments, this metric measures “relative heat in Bitcoin Perpetuals, Futures, and Options weighted by Open Interest”-you know, all the fun stuff that makes our heads spin. Currently, it’s sitting at 0.09, its lowest level since November 2022. A coincidence? We think not. 🤔

“We’ve got some big hurdles to clear, like institutional selling, but with the Heater in the green zone, I can’t be bearish. The fundamental value is there,” said Capriole’s Charles Edwards, probably sipping on a coffee as he said it. ☕

“I’m betting on higher prices for at least the next week. Let’s ride this wave.”

Edwards even shared a chart showing Bitcoin’s dynamic range network value to transaction (NVT) ratio, which now suggests it’s “oversold” relative to on-chain transactions. It’s like a bargain sale for Bitcoin. 💸

Meow??? How high can the cat bounce? 🐱- Peter Brandt (@PeterLBrandt) November 25, 2025

But not everyone is buying into the optimism. Some market participants are still shaking their heads. Peter Brandt, the long-time trader, believes that this BTC/USD recovery from $80,500 lows might just be a classic “dead cat bounce”-a fleeting rise in a broader downtrend. 🐾

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2025-11-25 11:08