Senior commodity strategist Mike McGlone from Bloomberg Intelligence has issued a sharp warning to investors, saying that cryptocurrencies are likely to be the worst-performing asset class in 2025. According to the analyst, the macroeconomic landscape suggests that risk assets such as Bitcoin and Ethereum could face significant challenges in the months ahead.
Cryptocurrencies Under Pressure
McGlone highlights that the Bloomberg Galaxy Crypto Index (BGCI) is roughly flat year-to-date. While this performance mirrors the S&P 500, he considers it a negative signal because crypto carries far higher volatility. For him, equal returns with four times the risk is a red flag for serious investors.
He also cautions that the market could be approaching a deeper correction, particularly if global liquidity continues to tighten and capital rotates toward safer assets.
Gold and Treasuries in the Lead
According to McGlone, gold and U.S. Treasury bonds are positioned to outperform in 2025, serving as safe havens in an environment of heightened uncertainty. He has previously suggested that Bitcoin could drop toward $10,000 if risk aversion intensifies and speculative demand dries up.
The strategist frames 2025 as a potential stress test for the crypto sector, where only the strongest projects and most disciplined investors are likely to weather the storm.
Key Factors to Watch
Investors should closely monitor:
- Macroeconomic indicators: Any signs of a slowdown could accelerate a flight to safety.
- Federal Reserve policy: Interest rate decisions will heavily influence capital flows in 2025.
- Equity correlation: A sharp S&P 500 decline could magnify pain across crypto markets.
For McGlone, this year might be the one when crypto enthusiasm faces its toughest reality check, reinforcing the case for a balanced and risk-aware portfolio.
Source: Bloomberg Intelligence, Finbold, U.Today
