- Mike Bloomberg analyst McGlone analyzed the figures bitcoin ETF iShares Bitcoin Trust ETF and did not advise investing in this exchange-traded fund.
- He also believes that altcoins are undermining Bitcoin’s performance.
- Capital injections into altcoins will force Bitcoin become significantly cheaper.
Bloomberg analyst Mike McGlone explained why it’s best to avoid buying bitcoin ETF, released in the United States in January 2024.
McGlone appreciated various indicators of the iShares ETF Bitcoin Trust ETF (IBIT) based on BTC since the start of trading and came to the following conclusions:
- The total return on investment in this derivative is not increased;
- It is highly correlated with the SPDR S&P 500 fund. ETF Trust (SPY), based on shares;
- The volatility of the IBIT price is approximately four times greater than the amplitude of fluctuations in the price of SPY shares.
High volatility, correlation, and the lack of a more impressive return are usually at the top of the list of reasons to avoid buying an asset when diversifying an investment portfolio, McGlone concluded.
IBIT indicators on the chart
Mike is negative about IBIT’s prospects and believes that altcoins will destroy it. BitcoinIn 2009, BTC was the only cryptocurrency, but now there are millions of digital assets that are taking capital away from Bitcoin. Many of them have no practical value, yet their market capitalization amounts to billions of dollars.
McGlone believes the bearish trend in the virtual currency market will continue, and Bitcoin will fall in price to $10,000. The analyst predicted the coin’s price would fall to this level back in December 2025, as сообщалось in the editorial article Happy Coin NewsSince then, the cryptocurrency’s value has fallen by 18% and is now is $ 70,987.
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