Cryptos Lagging Global Stocks as Risk Asset Cycle Wanes

Bloomberg’s Senior Commodity Strategist, Mike McGlone, suggests cryptocurrencies underperform global stocks, hinting at the possible end of a high-risk asset cycle, as reported on December 31.

This potential market shift poses significant risks for high-volatility assets like Bitcoin, intensifying investor focus on asset volatility and future valuations.

Crypto Loses Ground to Stocks Amid Surging Volatility

Mike McGlone, a Senior Commodity Strategist at Bloomberg Intelligence, emphasizes that the performance of cryptocurrencies after a risk-off adjustment has been inferior to global stocks. He notes that while the Bloomberg Galaxy Crypto Index (BGCI) has risen by about 90% from the end of 2017 to December 30th, its annualized volatility is about seven times higher than stocks.

Cryptocurrencies may experience a market rollover, with Bitcoin (BTC) particularly at risk of dropping significantly. McGlone suggests a potential BTC price of $10,000, which marks a steep decline from recent levels. “BTC crash alert… could plunge 90 to 10000 by 2026,” McGlone warns source. Historically, first stops are around $50,000.

Market reactions to McGlone’s analysis have been mixed, with some viewing his cautionary stance as a reflection of broader concerns over risk asset cycles. However, there are no significant statements from key industry figures or regulatory bodies on this issue.

Bitcoin Faces Pressure: $10,000 Prediction and Regulatory Risks

Did you know? In December 2025, Bitcoin’s price changes over 90 days showed a decrease of 26.55%, reflecting high volatility and investor caution during this period, according to CoinMarketCap data.

As of December 31, 2025, Bitcoin (BTC) holds a market cap of $1.76 trillion, with a circulating supply of 19,969,625 BTC out of a max supply of 21 million. CoinMarketCap data indicates a current price of $87,936.82 and a 24-hour trading volume of $33.63 billion, down 0.82%.

The Coincu research team notes that cryptocurrencies might face further regulatory scrutiny, affecting their financial and technological landscapes. Experts suggest that such developments could accelerate the market’s maturation, despite concerns over volatility and risk cycles.