Bloomberg’s commodity market expert Mike McGlone has issued a warning about a potential downturn for bitcoin, particularly in comparison to gold. He highlighted that bitcoin’s performance has been disappointing since reaching its peak in 2021, with the bitcoin/gold ratio plummeting by about 40% from its 2021 high of 37 times.
In his recent evaluation of commodities, including BTC, McGlone drew attention to the bitcoin-to-gold ratio and its implications. He pointed out that the highly speculative digital asset has been trailing gold since the 2021 high, with the ratio currently standing at about 40% below its peak. This trend, according to McGlone, could signal either an opportunity for bitcoin to catch up or indicate a recession, and he leans towards the latter, particularly due to the impact of the end of zero-interest-rate policies and the 2021 liquidity surge.
McGlone’s insights are not new, as he previously discussed the bitcoin-to-gold ratio in early 2024. He suggested that the underperformance of bitcoin compared to gold, despite a high-performing U.S. stock market, could have significant implications, especially with the current Federal Reserve’s federal fund rate at 5.58, which has made assets like gold and bitcoin less attractive in portfolios.
In reflecting on this analysis, it’s important to consider the potential implications for the crypto industry and the overall market trends. Share your thoughts on McGlone’s analysis and the bitcoin-to-gold ratio in the comments section below.
