Bloomberg Analyst: MVDA Volatility Outpaces Nasdaq, ETF Approval May Mark Crypto Market Peak

Bloomberg Intelligence senior commodity strategist Mike McGlone noted that the Market Vector Digital Assets 100 index (MVDA) has failed to outperform the Nasdaq 100 (NDX) since 2017. Despite having roughly three times the volatility of the NDX, the MVDA has seen flat performance over the last decade and lacks portfolio diversification value. McGlone suggests that the approval of spot Bitcoin ETFs in the U.S. and policy shifts ahead of the 2024 election may represent a cyclical peak for the crypto market, with low probability for further improvement. Bitcoin accounts for approximately two-thirds of the MVDA index.