Bloomberg analysts: Crypto assets have underperformed on a risk-adjusted basis, which may indicate that the current rapid rise cycle of risk assets is nearing its end

Senior Commodity Strategist at Bloomberg Intelligence, Mike McGlone, posted on the X platform stating, "Cryptocurrencies have underperformed global equities on a risk-adjusted basis, potentially signaling that the current rapid rise cycle of risk assets may be nearing its end.

From the end of 2017 to December 30, the Bloomberg Galaxy Crypto Index (BGCI) has risen approximately 90%, but this increase is only comparable to the total market capitalization growth of global equities; meanwhile, its annual volatility is about 7 times higher. This means that, despite bearing significantly higher risks, crypto assets have not delivered corresponding excess returns."