Mike McGlone, the chief commodity strategist at Bloomberg Intelligence, tweeted about gold, Bitcoin, and other commodities in light of the US’s current austerity measures affecting its external economic policy.
Gold vs. Bitcoin
McGlone noted that gold is on the rise, outpacing Bitcoin. He warned that Bitcoin, aligning with the Nasdaq 100 index, may face a major crash this year.
“Great Reset Delayed?”
He suggested that the “Great Reset,” a concept introduced at the World Economic Forum in 2020 tied to economic downturns and policy changes, might be on hold. McGlone emphasized that gold is performing well against crude oil, the S&P 500, and Bitcoin. If the trend continues, it could imply deflation.
Economic Context
According to McGlone, the ongoing US austerity and tariffs on neighboring countries might induce necessary corrections in risk assets, including Bitcoin.
Historical Parallels
He compared Bitcoin’s current trajectory to the Nasdaq’s rise before its dramatic crash in 2000 during the dot-com bubble, when tech stocks were overvalued. That collapse saw Nasdaq fall by 80%, followed by a slow recovery.
> “Great Reset Delayed? Gold Shining vs. Crude, Stocks and Bitcoin – #Gold is rising vs. the S&P 500, #Bitcoin, #crudeoil and most #commodities with deflationary implications from continuation. Extreme US austerity and tariffs might be ample catalysts for some overdue reversion in…”
> — Mike McGlone (@mikemcglone11) March 7, 2025
He hinted that a bubble may be forming around Bitcoin, which could lead to a significant downturn this year. Although Bitcoin could potentially reach $100,000 again, an 80% drop from that price would lead it to $20,000, a figure some in the crypto market consider unrealistic.
Currently, Bitcoin has risen 4.75%, trading at $89,475 but struggling to maintain levels above $90,000.
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