Bloomberg senior analyst Mike McGlone stated that Bitcoin and other cryptocurrencies have underperformed as portfolio assets over the past decade. The MarketVector Digital Assets 100 Index (MVDA) has remained essentially flat since 2017 despite averaging three times the volatility of equities, while the Nasdaq-100 Index continued to rise during the same period.
McGlone argues that crypto failed to provide effective diversification due to its positive correlation with the stock market. He suggests the asset class peaked following the 2017 launch of Bitcoin futures and mainstream adoption, with U.S. ETF approvals and Trump's pre-election stance shift potentially marking the final high point. According to the analyst, this underperformance trend is unlikely to reverse.
Bloomberg Analyst: Bitcoin Underperformed Stocks Over Past Decade, Peak Moment Has Passed
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