Bitcoin (BTC) is still “up” as its value falls well below its all-time highs relative to the S&P 500.
Mike McGlone, chief commodities strategist at Bloomberg Intelligence, suggested in a recent analysis of X that the risk-asset race “may be over.”
McGlone: Bitcoin Suffering from a ‘Hangover’
Bitcoin is struggling to reach its recent March highs, but another indicator suggests a more serious systemic vulnerability.
McGlone noted that BTC/USD is currently worth about 11 times the value of the S&P 500, which is close to its all-time high.
In Q1 2020, Bitcoin reached its peak, reaching 15x the S&P, a record that has not been broken to this day. On the other hand, in the future, it could fall 50% from that point.
“Is the fastest horse the signal that the race is over?” McGlone asked.
“The current Bitcoin/S&P 500 peak of around 11x was 15x in Q120 and the low this year was 14x. The biggest money pump in history and the US ETF launch in the past tense could suggest a hangover, pendulum swing back to 7x Bitcoin/SPX.”
In subsequent interactions, he confirmed his theory that Bitcoin will continue to “roll.”
“The fastest horse in the race may be signaling that the race is over,” he wrote when asked about Bitcoin’s relative underperformance compared to other risky assets.
As Cointelegraph reported, this performance is outperforming gold and the S&P 500, with XAU/USD hitting new highs this month.
BTC Price Rebounds to $60K, But Risks of a “Bearish” Trend
According to data from Cointelegraph Markets Pro and TradingView, the price of BTC fell by around $60,000 ahead of the Wall Street opening on August 28.
Related: Bitcoin Exchanges Witness Third-Largest Daily Outflows in 2024
After a sharp overnight liquidation crash, BTC/USD rose back up to $58,000 before halting its downtrend.
Popular trader Crypto Chase concluded that day that “there is still no change in trend,” citing the months-long consolidation phase since the March highs.
“The bright side of all this consolidation is that a breakout would be a clear signal for an all-time high. The not so bright side is that a lower low could be next (but I see that as a buying opportunity/needs to bottom before the ATH).”
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