Legendary Analyst Mike McGlone Weighs In on Whether Bitcoin Will Rebound – “If the S&P 500 Index Drops 20%…”

Bloomberg Intelligence senior commodities strategist Mike McGlone noted Bitcoin’s recent weak performance compared to equity markets and warned investors about potential risks. According to McGlone, the key question for Bitcoin is what will halt its downward trend.

McGlone noted that Bitcoin and the S&P 500 index’s 200-day moving averages have long exhibited a similar pattern. However, the recent decline in Bitcoin, coupled with beta indicators (measuring market risk appetite) reaching record highs, suggests a growing divergence between the two assets. According to the analyst, in a more optimistic scenario, Bitcoin could once again catch up with the strong performance of equity markets.

On the other hand, McGlone argued that Bitcoin may face a new risk, which he described as the “first cryptocurrency curse.” Recalling that Bitcoin, which emerged as a single cryptocurrency in 2009, now competes with thousands of digital assets, the analyst stated that the unlimited token supply in the sector could put pressure on the price.

McGlone stated that Bitcoin remaining above its 200-day moving average could signal a recovery, but the greater risk is that Bitcoin, which in the past led risky assets upwards, might this time take on a downward role. According to the analyst, if the S&P 500 index experiences a sustained correction of approximately 20 percent, the Bitcoin price could retest the $10,000 level.

*This is not investment advice.