Bitcoin Faces Market Reset Risk As Gold Strengthens, Warns McGlone

Bitcoin’s valuation against gold may have peaked, with a potential sharp correction likely, according to Bloomberg’s Mike McGlone

The gold-to-Bitcoin ratio and market-cap-to-GDP metrics suggest a return to historical averages is on the horizon

Strategy acquired 6,911 more Bitcoins, increasing total holdings to over 506,000 BTC worth nearly $34 billion amid price volatility

Bitcoin could be heading toward a market reset as its value compared to gold shows signs of reaching a critical peak. Bloomberg Intelligence strategist Mike McGlone issued a warning on Bitcoin’s current standing, stating that its gold ratio may have become unsustainable. In 2024, Bitcoin’s value reached forty times the price of a single ounce of gold

Gold-to-Bitcoin Ratio Sparks Concerns

McGlone believes this ratio is unlikely to hold, suggesting that a reversion may soon follow. He linked this view to historical market patterns, comparing the current situation to the economic conditions before the 1929 crash and the dot-com bubble in 1999. At present, the U.S. stock market-cap-to-GDP ratio stands at 2.2, which matches levels seen before those major downturns

According to McGlone, the market is showing clear signs of “elevated reversion risks,” meaning Bitcoin may retrace significantly to reflect historical averages. The strategist emphasized that the shift back to traditional assets, such as gold, is already visible in rising gold ETF inflows and declining interest in Bitcoin ETFs

Dogecoin Also Under Pressure

McGlone also warned about a potential decline in Dogecoin, noting that its price action resembles Bitcoin’s in key areas. The movement of funds away from both digital assets into gold signals that investors are rebalancing portfolios toward safer assets. The expert sees this trend as part of a wider shift impacting both BTC and DOGE

Despite warnings, Michael Saylor’s company Strategy continues its aggressive Bitcoin accumulation. On March 24, the firm added 6,911 Bitcoins, spending approximately $584.1 million. With this purchase, Strategy’s total holdings climbed to 506,137 BTC, currently valued at around $33.7 billion

Investor behavior appears to be changing. While Strategy expands its Bitcoin exposure, broader market sentiment is turning toward gold. This development supports McGlone’s argument that Bitcoin may have reached a valuation ceiling. Hence, traditional assets could play a larger role in portfolios moving forward.