Bitcoin Could Drop 60% Against Gold, Bloomberg Analyst Warns

Bitcoin may face its weakest performance relative to gold in nearly seven years, according to Bloomberg Intelligence strategist Mike McGlone. In a recent X post, McGlone cautioned that the Bitcoin-to-gold ratio appears fragile, threatening to break below the 25x support level.

McGlone described the flat performance of both assets over the past five years as a signal of Bitcoin’s potentially waning dominance, calling the setup “an apex for risk assets.” The ratio, which peaked near 60x in late 2021, has since stalled, suggesting a cooling of Bitcoin’s momentum while gold has strengthened.

Bloomberg charts show the ratio repeatedly rebounding off 25x throughout 2025, with each recovery losing strength. The latest test coincided with rising U.S. Treasury yields, recently above 4%, and increased equity volatility, typically favoring safer assets like gold.

According to McGlone’s model, a breakdown below 25x could lead to a drop to 15x, representing a 60% reduction in Bitcoin’s relative strength against gold. This potential shift would mark Bitcoin’s weakest position versus gold since 2018, a possible “inflection point for risk assets.”

Gold’s resilience despite easing monetary policy and rate cuts contrasts with Bitcoin’s muted response, suggesting waning institutional demand for Bitcoin. McGlone argues this divergence reinforces gold’s traditional role as a safe haven.

In a separate post, McGlone suggested that gold’s parabolic rise in 2025 may be signaling limitations in U.S. equity market valuations. The stock market’s total capitalization exceeding 40% of GDP suggests potential for a significant move, which could benefit gold.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.