Bloomberg Analyst: Cryptocurrencies underperform after risk adjustment, possibly indicating that the current rapid rise in risk assets is nearing its end.

GateUser-6433627c · 2025-12-31T15:35:12+00:00

Bloomberg Intelligence strategist Mike McGlone pointed out that cryptocurrencies underperform global stocks on a risk-adjusted basis, potentially indicating that the upward cycle of risk assets is nearing its end. Despite a 90% increase in the crypto index since the end of 2017, it is comparable to the growth in global stock market capitalization, with volatility seven times higher, indicating that high risk has not yielded excess returns.

GateUser-6433627c

2025-12-31 15:35:12

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On December 31, Bloomberg Intelligence Senior Commodity Strategist Mike McGlone stated, “Cryptocurrency’s risk-adjusted performance lags behind that of global stocks, possibly signaling that this rapid rise in risk assets is nearing its end. From the end of 2017 to December 30, the Bloomberg Galaxy Crypto Index (BGCI) increased by approximately 90%, but this gain is only comparable to the total market capitalization growth of global stocks; meanwhile, its annual volatility is about 7 times higher. This means that, despite taking on significantly higher risk, cryptocurrencies have not delivered corresponding excess returns.”

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