Bloomberg: Bitcoin's Volatility Premium Diminishes Against Silver, Yet Maintains Long-Term Support – What's Next?

Summary:
Bloomberg strategist Mike McGlone has reported that Bitcoin has lost its volatility advantage against silver, while still holding onto its long-term support. Following a significant drop from its all-time high, Bitcoin has struggled against resistance levels and now trades near the upper $80,000 range, as silver shows a contrasting upward trend.

Key Takeaways

Bitcoin's volatility has fallen to the same level as silver's for the first time.
The Bitcoin-to-silver price ratio has declined towards a long-term support level around 1,000x.
Historical patterns suggest Bitcoin could see recoveries from this support level.
Metals may outperform cryptocurrencies in 2026 according to Bloomberg analysis.

Image Owned By The Crypto Basic. Logo Displayed In The Image Are Owned By Respective Crypto Project

Bitcoin's Struggle Amidst Silver's Rise

Bitcoin is currently experiencing selling pressure after reaching its all-time high of $126,000 in early October 2025. Following this peak, the cryptocurrency underwent a steep decline to $80,537 by late November, marking a 36% drop in under two months.

After a brief rebound above $90,000 in early December, Bitcoin has faced repeated challenges, struggling to break through the $90,000 to $94,000 resistance zone, ultimately settling around $87,990.

In contrast, silver (XAG) has performed well during the same timeframe. After October 2025, silver entered a steady uptrend, culminating in a new peak of $84 on December 29, 2025. However, it faced a swift 9% daily retreat after reaching this level and now trades near $76.

Bitcoin's Volatility Premium Erodes

In his latest analysis, Mike McGlone from Bloomberg Intelligence noted this performance disparity between Bitcoin and silver. His findings highlighted that Bitcoin’s volatility has fallen to match silver’s, resulting in the Bitcoin-to-silver ratio dipping to 1.0 for the first time.

Historically, Bitcoin exhibited much higher volatility, with the ratio exceeding 5.0 in 2017 and peaking at approximately 2.5 in 2021. The recent equalization with silver indicates that Bitcoin is demonstrating more stability and maturity.

Bitcoin vs silver Bloomberg Intelligence

Maintaining Long-Term Support for Bitcoin

Simultaneously, the Bitcoin-to-silver ratio is approaching a significant long-term support level near 1,000x. This development coincided with silver’s peak of $84, while Bitcoin's price stagnated.

In past cycles, this 1,000x level acted as a crucial support, providing a floor during downturns, such as in 2018/2019 and again in 2022. Historically, when nearing this level, Bitcoin has shown reduced selling pressure, leading to recoveries as conditions stabilized.

McGlone pointed out that a turning point often occurs when volatility decreases rather than increases. Since silver struggled to maintain its $84 level, Bitcoin has managed to keep its 1,000x support, positioning both assets at critical technical levels rather than in strong upward trends. Should Bitcoin regain some volatility, it may outperform silver without relying on speculative trading.

Metals Predicted to Outperform Crypto in 2026

In a comparative analysis, McGlone assessed the Bloomberg All Metals Total Return Subindex against the Bloomberg Galaxy Crypto Index, indicating that metals are gaining strength as 2025 concludes, with the ratio rising from about 13 to 28.

Metals vs Crypto Bloomberg Intelligence

The S&P 500's 120-day volatility has remained higher than the extremely low levels observed in 2021, suggesting that the current environment might favor metals over volatile cryptocurrencies, particularly as controlled volatility persists. McGlone expects precious metals to continue to outperform crypto assets heading into 2026.

Bitcoin’s Short-Term Outlook

Currently, Bitcoin's short-term prospects remain uncertain, facing strong resistance at and above $90,000. Analyst Lennaert Snyder noted that $86,900 serves as a key support level, as Bitcoin attempts to stabilize after sweeping liquidity in that range.

He sees potential for buying opportunities closer to $85,000 or lower, while a crucial threshold of $90,600 must be watched. A failure to break above this level could lead to selling pressure, whereas reclaiming this might signal upward momentum.

Additionally, analyst Michaël van de Poppe pointed out repeated rejections above $88,000, indicating that Bitcoin has been trading sideways for several weeks. This prolonged range may heighten the likelihood of a sharp price movement when market conditions change.

Disclaimer: This article is intended for informational purposes only and should not be viewed as financial advice. The opinions expressed are those of the author and do not necessarily reflect the views of The Crypto Basic. Readers are encouraged to conduct thorough research before making investment decisions. The Crypto Basic is not responsible for any financial losses.