Bloomberg commodity strategist Mike McGlone is sounding the alarm — he believes the performance of Bitcoin compared to gold may be an early warning sign of broader trouble for U.S. stocks and other risk assets. According to him, the BTC/gold ratio is a “canary in the coal mine,” hinting at upcoming turbulence.
🔹 Falling BTC/Gold Ratio as a Warning Signal
McGlone pointed out that the Bitcoin-to-gold ratio is approaching a critical level of 33x. If it fails to hold that threshold, it could signal a loss of investor confidence in riskier markets.
“The weakening of Bitcoin versus gold may act as a canary in the coal mine for risk assets, creating excessive pressure to stay above the 33x level,” McGlone said in a post on X dated June 22.
🔹 Context: S&P 500 Plunge Wipes Out Trillions
At the same time, McGlone reminds that the market is already shaken — the S&P 500 dropped nearly 20% in the first half of the year, erasing about $13 trillion in market capitalization — over 40% of U.S. GDP. He notes this is the largest relative GDP loss during a 20% correction in almost a century.
While stocks rallied back to record highs, Bitcoin has been losing steam — especially when compared to the strengthening gold price. According to McGlone, this divergence signals a fading confidence in crypto as a high-beta speculative asset.
🔹 Is Bitcoin Losing Its "Digital Gold" Status?
The excitement surrounding Bitcoin as "digital gold" is evidently fading. Investors are shifting back to traditional gold amid persistent global uncertainty — trade tensions, geopolitical unrest, and especially the escalation of conflict in the Middle East after U.S. strikes on Iranian sites.
Gold has become one of the top-performing assets of the year, with inflows on track to hit a record $80 billion in 2025.
🔹 Bitcoin Enters Danger Zone
Meanwhile, Bitcoin has mostly hovered above the $100,000 support zone but has briefly dipped below during recent geopolitical shocks. Analysts warn that a prolonged dip below this level could trigger a deeper correction — possibly down to $80,000.
McGlone concludes with a warning: if Bitcoin doesn’t regain strength relative to gold, broader risk markets could face another wave of sell-offs. The BTC/gold ratio may indeed be the early signal of trouble ahead.
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Bitcoin vs. Gold: A Canary in the Coal Mine? Strategist Warns of Impending Market Decline
Bloomberg commodity strategist Mike McGlone is sounding the alarm — he believes the performance of Bitcoin compared to gold may be an early warning sign of broader trouble for U.S. stocks and other risk assets. According to him, the BTC/gold ratio is a “canary in the coal mine,” hinting at upcoming turbulence.
🔹 Falling BTC/Gold Ratio as a Warning Signal McGlone pointed out that the Bitcoin-to-gold ratio is approaching a critical level of 33x. If it fails to hold that threshold, it could signal a loss of investor confidence in riskier markets. “The weakening of Bitcoin versus gold may act as a canary in the coal mine for risk assets, creating excessive pressure to stay above the 33x level,” McGlone said in a post on X dated June 22.
🔹 Context: S&P 500 Plunge Wipes Out Trillions At the same time, McGlone reminds that the market is already shaken — the S&P 500 dropped nearly 20% in the first half of the year, erasing about $13 trillion in market capitalization — over 40% of U.S. GDP. He notes this is the largest relative GDP loss during a 20% correction in almost a century. While stocks rallied back to record highs, Bitcoin has been losing steam — especially when compared to the strengthening gold price. According to McGlone, this divergence signals a fading confidence in crypto as a high-beta speculative asset.
🔹 Is Bitcoin Losing Its "Digital Gold" Status? The excitement surrounding Bitcoin as "digital gold" is evidently fading. Investors are shifting back to traditional gold amid persistent global uncertainty — trade tensions, geopolitical unrest, and especially the escalation of conflict in the Middle East after U.S. strikes on Iranian sites. Gold has become one of the top-performing assets of the year, with inflows on track to hit a record $80 billion in 2025.
🔹 Bitcoin Enters Danger Zone Meanwhile, Bitcoin has mostly hovered above the $100,000 support zone but has briefly dipped below during recent geopolitical shocks. Analysts warn that a prolonged dip below this level could trigger a deeper correction — possibly down to $80,000. McGlone concludes with a warning: if Bitcoin doesn’t regain strength relative to gold, broader risk markets could face another wave of sell-offs. The BTC/gold ratio may indeed be the early signal of trouble ahead.
#BTC , #GOLD , #BitcoinVsGold , #CryptoTrend , #CryptoMarket
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“