Bitcoin Price Drops by 8.5%: Bloomberg’s McGlone Warns as Gold Rises and Crypto Falls!

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Bloomberg’s senior commodity strategist, Mike McGlone, is back in the spotlight with another bold take on the markets. After previously warning that Bitcoin could “lose a zero,” McGlone is now turning heads with his latest insights. This time, he’s highlighting gold’s growing strength as it challenges the dominance of traditional stocks.

His latest analysis comes as Bitcoin, the world’s largest cryptocurrency, experiences a sharp decline, plunging 8.5% to $77,470. With market conditions shifting rapidly, McGlone questions if investors are choosing the right assets or if they’re betting on the wrong assets at the wrong time.

Gold Gaining Edge Over Risky Assets

According to McGlone’s recent analysis, we may be witnessing a significant paradigm shift in asset valuations. He suggests that risky assets like stocks and cryptocurrencies might be due for a price correction after being overvalued for a long time. 

Meanwhile, safer investment options like gold and U.S. Treasury bonds are becoming more attractive to cautious investors.

McGlone’s attached chart shows how gold has performed compared to stocks (S&P 500) over the years. The gold-to-stocks ratio has historically seen major breakouts during periods of economic uncertainty, proving its status as a safe-haven asset.

The data now hint that gold might be gearing up for another strong rise, possibly outperforming stocks soon.

Bitcoin vs. Treasuries: A Better Pick!

McGlone also compares the investment choices of two major financial figures, Michael Saylor and Warren Buffett. Saylor, a well-known Bitcoin advocate, has placed significant bets on the cryptocurrency, whereas Buffett remains steadfast in his commitment to U.S. Treasury bonds. 

McGlone aligns himself with the latter, viewing Treasury bonds as a more stable investment in uncertain times.

Bitcoin Could Lose a Zero

This isn’t the first time McGlone has warned about Bitcoin’s future. Earlier, he predicted it might “lose a zero,” suggesting a major drop. As McGlone recalls, the Nasdaq hit 5,000 in 2000 before the dot-com bubble burst.

Now, he compares Bitcoin’s rise to the Nasdaq’s peak before the dot-com crash.

He points out that Bitcoin was born after the 2008 financial crisis, and now he believes the market may have peaked, as Bitcoin recently hit $100,000 before pulling back, hinting at a possible downturn.