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Mike McGlone, senior commodity strategist at Bloomberg Intelligence, has issued an important Bitcoin warning, commenting on its rivalry with gold on the market.
The expert suggests that Bitcoin may have peaked versus gold, and now a Great Reset might be coming.
Arman ShirinyanGreat Reset on horizon for Bitcoin
Mike McGlone started his tweet by suggesting that Bitcoin may have reached a historic peak against gold and that the market may be in for a big correction – a “Great Reset.”
In 2024, the Bitcoin-to-gold ratio (i.e., how many ounces of gold are equal to one BTC) peaked at 40x, which implied that one Bitcoin was worth 40 times greater than one gold ounce. However, McGlone seems to believe that this might be unsustainable and is likely to reverse this year.
He also mentioned the U.S. stock market-cap-to-GDP ratio – this metric hit 2.2x. Historically, the expert continued, such peaks were seen back in 1929 and 1999 before tremendous market crashes. In those years, the U.S. faced the beginning of the Great Recession and the crash of the dot-com bubble.
Overall, McGlone’s tweet contains a clear warning that the stock market and Bitcoin are likely to head back to their historic averages, as he mentioned “elevated reversion risks.” This means that if, currently, Bitcoin is overvalued compared to gold, then BTC could stage a major correction.
McGlone's gloomy Dogecoin prediction
Ten days ago, McGlone voiced a similar prediction, stating that Bitcoin could lose one zero from $100,000 and head back to the $10,000 level for a similar reason; investors are beginning to turn toward gold with their backs to Bitcoin, which is proven by massive inflows into gold ETFs and outflows from Bitcoin exchange-traded funds.
Last week, a similar warning was made by McGlone, not only about the “digital gold” Bitcoin but about the legendary meme cryptocurrency Dogecoin. He stated that the gold-to-Bitcoin ratio closely resembled DOGE's price action, adding that investors are likely to start withdrawing funds from DOGE and BTC and move them into gold.
Yuri MolchanStrategy grabs almost 7,000 BTC
Today, Michael Saylor announced on the X platform that his company Strategy (formerly MicroStrategy) has made yet another major Bitcoin acquisition. The Bitcoin-focused firm has added 6,911 Bitcoins to its enormous stash.
That amount of BTC cost Strategy roughly $584.1 million. After this purchase, the company’s crypto holdings comprise 506,137 BTC worth approximately $33.7 billion.
Vladislav Sopov
Dan Burgin