Mike McGlone Says Bitcoin and Other Cryptocurrencies Have Underperformed Over Nearly a Decade

Bloomberg senior analyst Mike McGlone said Bitcoin and other cryptocurrencies may be classified as underperforming assets from a risk and portfolio management perspective over the past nearly 10 years. According to PANews, he wrote that the Market Vector Digital Assets 100 Index, or MVDA, which is about two-thirds Bitcoin, has traded mostly sideways since 2017, while the Nasdaq 100 Index has continued to rise.McGlone said MVDA has had average volatility about three times higher and has remained positively correlated with stocks, failing to provide effective diversification. He added that after Bitcoin futures launched in 2017, cryptocurrencies entered the mainstream, but MVDA stopped outperforming the Nasdaq 100. He also said the launch of U.S. ETFs and a shift in stance before U.S. President Donald Trump’s 2024 election may have marked a peak for cryptocurrencies, and he does not expect that situation to change.