Bitcoin Correction? Bloomberg’s McGlone Predicts $70K BTC Pullback

• Bloomberg’s Mike McGlone predicts that the Bitcoin price could drop further to $70,000, with the Bitcoin-to-gold ratio potentially declining from 28X to 21X in the coming months.
• Institutional interest in BTC has waned as traditional safe-haven assets like U.S. Treasury bonds offer higher yields.

The latest decline of Bitcoin (BTC) price has accelerated with market uncertainty, inflation fears, and changing investor sentiment mounting pressure on the dominant crypto. In line with Bloomberg’s senior commodity strategist Mike McGlone, BTC price could drop to $70,000 amidst economic uncertainty and a possible turnabout in the recent surge in the U.S. stock market.

Bitcoin Price Confronts Fresh Fear

The crypto market is in another wave of increased wariness with Bitcoin price failing to pick up speed. Despite positivity around recent government moves, such as a suggested strategic BTC reserve in the United States, investors’ sentiment is still uncertain.

The Bitcoin-to-gold ratio, which indicates how much gold is required to buy one BTC, is at 28X. However, McGlone says that Bitcoin’s underperformance against gold can reduce this ratio to 21X in the next few months.

The price of Bitcoin fell to an intraday low of $80,052.49 earlier today. This is a dramatic fall from last week’s high at $95,000, adding to the bearish sentiment of the market.

Whilst, popular BTC skeptic Peter Schiff has commented on the recent downturn, saying that a correction was well overdue. For Schiff, BTC’s decline might continue for some time, potentially lasting the rest of the decade.

Macroeconomic indicators remain key influencers in the price action of Bitcoin. Recent U.S. Non-Farm Payrolls (NFP) figures released on Friday indicated increasing unemployment, further adding to investors’ fears about inflation. The release has fortified concerns that the economy is poised for a tougher time and subsequently led to a change in capital distribution strategies.

While there was initial euphoria at the announcement by former President Donald Trump of a strategic Bitcoin reserve, the enthusiasm has faded, as mentioned in our previous article. Market participants are reevaluating the potential effect of such a policy in light of overall economic uncertainties.

Institutional Investors Turn Cautious

Institutional investors have avoided big Bitcoin buys as policymakers are still at odds regarding the place of the cryptocurrency in the financial system. A recent White House summit on digital assets did not give clear direction, and investors continued to hold back, as noted in our previous article. 

Source: TradingEconomics

As the economic worries have grown, there has been an increasing move toward traditional safe-haven assets. The U.S. 10-year Treasury yield has jumped to 4.3%, a level last seen in November 2023, while the German 10-year Bund yield has risen to 2.45%. Yields on Japanese government bonds have also increased, up to 0.88%, a level last seen in 2013.

These increasing yields render bonds more appealing to institutional investors, resulting in capital flows away from risk assets such as BTC. Retail investors are, however, rebalancing their portfolios to deal with rising living expenses due to tariff-driven price increases.

While there is high selling pressure, Bitcoin miners have persisted in holding large amounts of holdings. Reports show that mining companies have deposited about $900 million in Bitcoin in their coffers, implying that long-term confidence in the asset is not broken despite short-term volatility.