Bloomberg analyst forecasts zero loss despite risk-on assets
Bloomberg McGlone warns bitcoin may “Lose a Zero”
Senior commodity strategist Mike McGlone of Bloomberg Intelligence has reiterated his prediction that Bitcoin “might lose a zero” as risk assets near the peak of a large speculative cycle.
Key Takeaways
- Bloomberg strategist Mike McGlone warns that Bitcoin might "lose a zero" amid an impending market correction.
- He draws a parallel between Bitcoin’s ascent to $100K and the Nasdaq Composite's 2000 peak during the dot-com bubble.
- Despite a 6% plunge in the Nasdaq-100 and a $6.6 trillion market loss, Bitcoin remained relatively flat.
- McGlone suggests that if Bitcoin continues to decouple from the stock market, its safe-haven narrative may strengthen.
McGlone drew a parallel with the Nasdaq Composite, which peaked at around 5,000 in 2000 during the dot-com bubble, noting that Bitcoin’s historic climb to $100,000 mirrors that earlier exuberance. He recalled that Bitcoin emerged from the bottom following the global financial crisis, and since then, it has led one of the most significant rallies in risk assets. However, recent events have signaled an impending correction in traditional markets: on Friday, the Nasdaq-100 index plunged over 6% amid widespread market uncertainty, and U.S. stocks shed a staggering $6.6 trillion over two days due to escalating tariff tensions.
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Bitcoin performance and future implications
Despite the severe downturn in the stock market, Bitcoin managed to remain relatively flat, prompting debates about its role as a risk asset. McGlone contends that the U.S. stock market had risen “too much” and now faces a “worthy catalyst” for a sustained drawdown. Additionally, while gold has outperformed Bitcoin this year, it too experienced a significant drop, underscoring the vulnerability of traditional safe havens.
Bitcoin price. Source: СoinGecko.
McGlone’s analysis suggests that if Bitcoin continues to decouple from the broader stock market, the narrative around its status as a safe haven could gain traction. As regulators, investors, and analysts closely monitor these shifts, the coming months will be critical in determining whether Bitcoin can weather the storm of a broader market correction or if its meteoric rise will be curtailed by a lasting pullback.
Read also: CryptoQuant founder says Bitcoin is in a bear phase
