Bitcoin may be heading for its weakest stretch against gold in nearly seven years, according to Bloomberg Intelligence strategist Mike McGlone.
In a recent X post, McGlone cautioned that the Bitcoin-to-gold ratio, a key measure comparing the price of one Bitcoin to ounces of gold, appears fragile, threatening to break below the critical 25x support level.
McGlone described the flat performance between both assets over the past five years as a sign that Bitcoin’s dominance may be fading, calling the setup “an apex for risk assets.”
The ratio, which once peaked near 60x in late 2021, has since stagnated, suggesting that Bitcoin’s momentum has cooled, while gold has quietly strengthened.
Bloomberg charts show the ratio repeatedly rebounding off 25x throughout 2025, with each recovery losing strength. The latest test coincided with a rise in U.S. Treasury yields, the 10-year yield recently moved above 4%, and growing equity volatility, all of which tend to favor safer assets like gold.
According to McGlone’s model, a breakdown below 25x could open the path toward 15x, effectively erasing nearly 60% of Bitcoin’s relative strength compared to the precious metal. He noted that this potential shift marks Bitcoin’s weakest position versus gold since 2018, framing it as a possible “inflection point for risk assets.”
Gold’s resilience amid easing monetary policy and rate cuts contrasts with Bitcoin’s muted response to the same conditions. McGlone argues that this divergence hints at waning institutional demand for Bitcoin and a reassertion of gold’s long-standing role as the ultimate safe haven.
Supporting his analysis, McGlone added in a separate post that gold’s parabolic rise in 2025 might be signaling the limits of U.S. equity market valuations. With the stock market’s total capitalization exceeding 40% of GDP, any sharp move in equities could echo across global asset classes, amplifying gold’s advantage.
Source: https://zycrypto.com/bitcoin-could-drop-by-60-against-gold-bloomberg-analyst-cautions/
