Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, has reaffirmed his forecast that Bitcoin could potentially lose a zero.
He recalled that the Nasdaq Composite, a benchmark for nearly all stocks listed on the Nasdaq exchange, reached its peak of approximately 5,000 in 2000, just before the dot-com bubble burst.
McGlone appears to be comparing this peak to Bitcoin’s remarkable rise to $100,000.
He pointed out that Bitcoin emerged during the period when the stock market hit its lowest point after the global financial crisis (GFC).
According to McGlone, Bitcoin has led “one of the greatest risk-asset rallies in history.”
The well-known analyst seems to believe that risk assets have hit the peak of an extensive speculative cycle.
Is Bitcoin a risk asset?
That said, numerous commentators have observed that Bitcoin performed unexpectedly well earlier this week, while the U.S. stock market faced a significant price correction. On Friday, the technology-heavy Nasdaq-100 index fell by over 6%, while the leading cryptocurrency remained relatively stable, despite being viewed as a risk-on asset.
The U.S. stock market saw a staggering loss of $6.6 trillion on Thursday and Friday due to global economic uncertainties regarding tariffs. According to McGlone, the U.S. stock market had risen “too much,” and there is now a “worthy catalyst” for a correction that he anticipates will be lasting.
Notably, gold, which has significantly outperformed Bitcoin this year, also experienced a substantial drop.
If Bitcoin continues to diverge from stocks, the “safe haven” narrative may ultimately prevail.
