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Bloomberg Intelligence senior commodity strategist Mike McGlone says Bitcoin is a potentially revolutionary asset bound to match the risk measures of gold as BTC’s volatility continues to decline.
In a new Stansberry Research interview, McGlone points out that the flagship cryptocurrency’s volatility is actually at its lowest point when viewed from a long-term timeframe.
“I’m measuring volatility annual[ly], 260-day, and [what] really started getting me bullish last year when Bitcoin volatility was going down and everything else was going up. It did reach a milestone. [The] 260-day volatility reached the lowest ever versus gold, versus the S&P 500, almost reach one to one versus the S&P 500, and the lowest ever versus crude oil.
When people say that Bitcoin volatility is high, yes sure, it’s only been around 10 years and gold has been around since the beginning of time. Bitcoin annual volatility is around 50 right now, so it’s a longer-term measure which is about the same volatility of gold was trading at in 1980 right when it had that big rally.
To me, when people say it’s volatile, sure it’s breaking up all-time new highs, it’s got a lot of unique things happening to it, but compared to other assets, it’s the lowest ever.”
McGlone adds that influx of institutional investment is significant as it will reduce the volatility of the largest crypto asset.
“I sense what I see in the market is a bid below from institutions getting in, not just Wall Street, but insurance companies, pension funds, endowments, potentially central banks, maybe not in the US yet – all coming on board that this is a digital form of gold in a world that’s going digital.”
When it comes to storing one’s wealth, McGlone says investing in gold only may not be enough.
“In a world going digital, I see Bitcoin adding competition gold. I’m bullish gold but Bitcoin should actually be in that same bucket because if you’re holding only gold, I feel it’s a little bit naked.”
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