Bitcoin Underperforms Nasdaq-100 Index Over Past Decade

Bloomberg analyst Mike McGlone has questioned the performance of Bitcoin as a portfolio asset. He stated that, on a risk-adjusted basis, digital assets have underperformed the Nasdaq-100 index over the past decade.

The MarketVector Digital Assets 100 Index (MVDA), which has a weighting of approximately two-thirds for Bitcoin, has lagged behind the Nasdaq-100 Index since 2017. McGlone highlighted that this index has shown around three times more volatility than the Nasdaq-100 Index over the same period.

McGlone noted that despite higher risk, digital assets have not provided a significant additional return compared to traditional assets in the long run. He also pointed out that the positive correlation between digital assets and stocks does not provide a practical benefit for risk management, limiting Bitcoin's ability to function as a risk-reducing tool independent of traditional assets.