Bitcoin volatility hits record low...McGlone: "Room for upside compared to gold may decrease"

Bitcoin (BTC) volatility has fallen to an all-time low, raising the possibility that its future returns compared to gold or stocks may be adjusted.

On the 12th (local time), Mike McGlone, Bloomberg commodity strategist, stated on X (formerly Twitter), "Bitcoin's 60-day volatility is at a record low compared to the S&P 500, and its price relative to the stock index has historically reached high levels," adding, "This suggests that, considering a recovery of balance between assets, an adjustment trend favorable to gold may appear." He explained that, given the balance between Bitcoin and traditional assets, Bitcoin could hint at an upcoming correction.

The strategist pointed out, "In the past, periods of low volatility often formed amid extreme pessimism, but this time, since market optimism dominates, systemic risk could become more pronounced."

He also added, "The annual volatility gap with gold has also hit a record low," stating, "This implies Bitcoin's maturity and can also be interpreted as a sign that a sharp price rise over the long term may become difficult."