• Bloomberg Intelligence senior macro strategist Mike McGlone believes the days of large Bitcoin pumps have come to an end.
• McGlone argues that Bitcoin is maturing and its volatility is declining relative to traditional store of values such as gold.
• He also suggests that BTC may be entering a period of extended retracement due to competition from Treasury yields.
Big Bitcoin Pumps Are Over
Bloomberg Intelligence senior macro strategist Mike McGlone believes the days of big Bitcoin (BTC) pumps are over. In his opinion, the top crypto asset’s volatility has more room to decline than most traditional assets, which could reduce its relative risk.
McGlone points out that BTC’s 90-day volatility is still relatively elevated at around 3x compared to gold, but it is well off the peak from 2018 at 12x. He also adds that this is indicative of a maturation process and deterioration in its nascent vigor. This could mean an elongated period of retracement for the cryptocurrency in comparison to traditional assets like the US Treasury two-year note which yield about 5%.
Competition From Treasury Yields
According to McGlone’s analysis focused on 100-week moving averages, there are mostly downward biases when comparing BTC with steepest Treasury yield competition in almost two decades.
Current Price Action
At time of writing, Bitcoin is trading at $26,109 and down 0.11% in 24 hours and 11% in 7 days.
Overall, Bloomberg Intelligence senior macro strategist Mike McGlone believes that the time for large Bitcoin pumps has come to an end due to decreased volatility relative to traditional store of values as well as stiff competition from Treasury yields resulting in a period of extended retracement for BTC.