Bitcoin Could Drop 60% Vs. Gold, Bloomberg Analyst Warns

Bitcoin may be poised for its weakest performance relative to gold in nearly seven years, according to Bloomberg Intelligence strategist Mike McGlone.

McGlone cautioned on X that the Bitcoin-to-gold ratio, a measure comparing Bitcoin’s price to gold’s price, appears vulnerable to falling below a critical 25x support level. The ratio, which peaked near 60x in late 2021, has since trended lower.

McGlone highlighted the five-year performance of both assets, noting that Bitcoin’s dominance may be waning. He described the situation as an “apex for risk assets.”

Bloomberg charts reveal repeated rebounds off the 25x level, but with diminishing strength. Recent volatility, including rising U.S. Treasury yields above 4% and equity market fluctuations, is favoring gold.

If the ratio falls below 25x, McGlone’s model suggests a potential drop to 15x, representing a 60% reduction in Bitcoin’s relative strength against gold. This would mark Bitcoin’s weakest position compared to gold since 2018.

Gold’s stability despite easing monetary policy contrasts with Bitcoin’s limited reaction, suggesting waning institutional interest in Bitcoin and a return to gold’s traditional safe-haven status.

In a separate post, McGlone suggested that gold’s rise in 2025 might indicate limits to U.S. equity market valuations, with the stock market’s capitalization exceeding 40% of GDP.

McGlone’s analysis points towards a potential inflection point for risk assets, potentially favoring gold’s continued strength.

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.