Mike McGlone, a macro strategist at Bloomberg Intelligence has indicated that the era of substantial Bitcoin BTC/USD price pumps might be drawing to a close.
Pointing to the convergence of Bitcoin's volatility in comparison to gold, McGlone's analysis offers insights into the potential future behavior of the world's leading cryptocurrency.
Bitcoin-To-Gold Volatility Convergence
The strategist highlighted that Bitcoin's volatility has more potential to decrease compared to most traditional assets.
This could lead to a continued reduction in the cryptocurrency's relative risk.
Currently, Bitcoin's 90-day volatility stands at approximately three times that of gold.
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While this indicates that Bitcoin's volatility remains relatively high compared to the traditional store of value, it's a significant reduction from its peak in 2018, where it was around 12 times that of gold.
A Maturing Asset Class
The data suggests that as Bitcoin matures as an asset class, its price swings are becoming less extreme, drawing it closer to the behavior of established assets like gold.
This convergence could be indicative of growing confidence among institutional investors and a broader acceptance of Bitcoin as a 'store of value'.
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