Bloomberg analyst McGlone says digital assets underperform the Nasdaq on a risk-adjusted basis
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AT A GLANCE
Mike McGlone believes that cryptocurrencies such as Bitcoin have performed poorly from a risk and portfolio-management perspective over the past years and that their peak may have passed.
Article
Bloomberg analyst: Cryptocurrencies such as Bitcoin have underperformed over the past years; crypto's peak moment has passed
PANews September 28 News: Mike McGlone, senior Bloomberg analyst, wrote that from a risk and portfolio-management perspective, Bitcoin and other cryptocurrencies may be classified as underperforming assets over the past nearly years. The Market Vector Digital Assets 100 Index (MVDA, approximately two-thirds of which is Bitcoin) has been broadly flat since 2017, while the Nasdaq 100 Index (NDX) continued to rise over the same period. Despite MVDA having average volatility approximately 3 times higher and being positively correlated with equities, it failed to provide effective diversification and underperformed from a risk and portfolio-management perspective. McGlone believes that after Bitcoin futures 2 017 were launched and cryptocurrencies entered the mainstream in MVDA, they no longer outperformed NDX; U.S.ETF listings and Trump's 2024 election...
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🔗https://www.panewslab.com/zh/articles/01a0e55e-45be-7073-a87c-1895fe8a5249
Key points
01
PANews reported that Bloomberg senior analyst Mike McGlone expressed views on the performance of Bitcoin and other cryptocurrencies.
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McGlone stated that, from a risk and portfolio-management perspective, Bitcoin and other cryptocurrencies may be classified as underperforming assets over the past nearly years.
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The article states that the Market Vector Digital Assets 100 Index (MVDA, approximately two-thirds of which is Bitcoin) has been broadly flat since 2017, while the Nasdaq 100 Index (NDX) continued to rise over the same period.
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The article states that MVDA's average volatility is approximately 3 times higher and that it is positively correlated with equities, failing to provide effective risk diversification.
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McGlone believes that after Bitcoin futures were launched in 2017 and cryptocurrencies entered the mainstream,MVDA no longer outperformed NDX。
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This is an analyst's assessment of the long-term investment performance of digital assets. He compares MVDA and NDX, concluding that the digital-assets index did not rise materially, yet assumed greater volatility and moved in the same direction as equities, making it of limited effectiveness as a diversification tool in a portfolio. This is an analytical opinion, not a confirmed market conclusion.
Why it matters to readers
This view questions the long-term risk-return profile and diversification value of digital assets such as Bitcoin and may affect whether investors include them in portfolios; however, the provided content does not present the full data and reasoning.
Beginners should distinguish between “price appreciation or decline” and “returns received for the risk assumed.” Even if a highly volatile asset occasionally rises sharply, it may not improve the overall portfolio; positive correlation with equities means they may fall at the same time.
Risks and unknowns
The content is PANews' relay of Mike McGlone's views and does not provide his original post.
The main text is truncated at “U.S.ETF listings and Trump's 2024 election,” so the subsequent reasoning cannot be confirmed.
It does not provide the specific starting and ending levels, returns, volatility methodology, or correlation data for MVDA and NDX.
“Crypto's peak moment has passed” is a headline and the analyst's judgment, and cannot be regarded as an established fact.
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The provided content cannot confirm whether this view had an actual impact on Bitcoin's price or capital flows.
Related concepts
MVDA
This term is not in the glossary yet. Browse related concepts in the glossary.
