"Elevated volatility and rising correlation with equities are undermining bitcoin's diversification appeal, signaling mounting pressure across crypto markets. The crypto bear market may be in its early days if performance since bitcoin ETFs began trading in January 2024 is a guide."
"McGlone's analysis suggests that bitcoin exposure has not delivered sufficient risk-adjusted returns despite increased institutional access, raising questions about the sustainability of current valuations."
Bitcoin is facing potential bear market conditions as rising volatility and increased correlation with equities raise concerns about a broader crypto downturn. Bloomberg's strategist Mike McGlone highlights the performance of Blackrock's IBIT and tightening liquidity, suggesting risks of deeper losses. The analysis indicates that bitcoin's diversification appeal is diminishing, and institutional expectations may not be met. Since the launch of bitcoin ETFs in January 2024, performance has been underwhelming, raising questions about risk-adjusted returns in the current market environment.
Read at news.bitcoin.com
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