U.Today - Recently, Mike McGlone, a senior strategist at Bloomberg Intelligence, shared some interesting observations on Bitcoin's performance. Let's break down what his analysis suggests without just quoting his tweets.
As of Sept. 1, saw a 15% drop in the third quarter, while the Nasdaq 100 Stock Index recorded a 2% gain during the same period. McGlone believes that this difference might indicate something significant.
According to McGlone, the relative weakness of could potentially be an early sign of a broader stock market downturn, possibly hinting at an upcoming recession. Alternatively, it might simply mean that Bitcoin is losing ground compared to traditional stocks.
The difference
When examining the data, it becomes clear that both Bitcoin and the Nasdaq have shown similar gains of around 30% over the past year. However, when considering risk, Bitcoin displays greater volatility over its 260-day average compared to the Nasdaq.
These findings have sparked discussions of Bitcoin's future, with some experts speculating that the might have entered a bear market following its peak in 2021. Given that Bitcoin has grown substantially since its initial trading at $1 in 2011, the implications of its recent performance are vital for investors worldwide.