Famous Bloomberg Analyst Makes Striking Claim about Bitcoin

• Mike McGlone suggests that Bitcoin’s volatility has more potential to decrease, leading to a continuous reduction in the relative risk of the top cryptocurrency.
• According to McGlone, Bitcoin’s volatility continues to decrease compared to that of gold, and it has more potential to decrease than most traditional assets.
• Bitcoin is experiencing growing acceptance in the traditional financial industry, especially after BlackRock’s spot Bitcoin ETF application.

Bloomberg Senior Macro Strategist Mike McGlone has revealed his predictions about volatility in Bitcoin and compared it to Gold.

McGlone Expects Lower Volatility for Bitcoin

The volatility of Bitcoin has significantly decreased over the last few years, as evidenced by its price movement. Bloomberg Senior Macro Strategist Mike McGlone suggests that Bitcoin’s volatility has more potential to decrease, leading to a continuous reduction in the relative risk of the top cryptocurrency. However, it still has higher volatility when compared to gold, which is a traditional store of value.

On August 21st, Bloomberg Intelligence’s Senior Macro Strategist Mike McGlone shared data about the convergence of volatility between Bitcoin and gold. According to McGlone, Bitcoin’s volatility continues to decrease compared to that of gold, and it has more potential to decrease than most traditional assets. The decrease in Bitcoin’s volatility also reduces its relative risk, making it less risky.

“My chart, which is about 3 times gold, shows Bitcoin’s 90-day volatility is still relatively high compared to the traditional store of value, but it’s far below the peak of about 12 times in 2018.”

According to the report, the days of significant price movements in BTC are behind us. Bitcoin might not experience sudden price surges or rapid moves to all-time highs, as its volatility has significantly decreased.

Bitcoin is gaining acceptance in the traditional financial industry, especially after BlackRock’s spot Bitcoin ETF application. Features like futures, cash-and-carry arbitrage, and exchange-traded funds are part of the maturation process of this foundational cryptocurrency.

Will BTC Price See Recovery?

Macro factors combined with weak technical chart patterns are putting pressure on the Bitcoin price. The Federal Reserve’s plan to continue interest rate hikes and the US Dollar Index (DXY) reaching 103.50 have recently caused the BTC price to drop.

According to a popular crypto analyst, every time BTC fell below the 200-day SMA over the last 10 years, it touched the Realized Price. Currently, the Realized Price is around $20,350.

The BTC price has fallen by 0.5% in the last 24 hours and is currently trading at a price of $26,024. The low and high prices in the last 24 hours were $25,986 and $26,260, respectively. However, the trading volume has increased by 4% in the last 24 hours.