Gold Surges While Bitcoin Faces Potential Crash, Says Bloomberg Analyst

Bloomberg Intelligence’s chief commodity strategist, Mike McGlone, has warned that Bitcoin could face a major crash in 2024, likening its trajectory to the Nasdaq 100’s collapse in 2000. While gold continues to outperform key assets like crude oil, the stock market, and Bitcoin, McGlone suggests that the current U.S. economic austerity and high tariffs on trade partners like Mexico, Canada, and China may trigger a reversion in risk assets.

McGlone speculates whether the “Great Reset,” a concept introduced at the 2020 World Economic Forum, has been delayed. He argues that gold's current strength may have deflationary implications if trends persist. Meanwhile, Bitcoin’s rise has mirrored the Nasdaq 100 index, which surged before the dot-com bubble burst, leading to an 80% market collapse.

The strategist hints at a possible Bitcoin bubble, suggesting that if BTC reaches $100,000, a similar 80% decline could push it back to $20,000. However, most crypto investors believe Bitcoin will never revisit such lows. Despite this caution, Bitcoin has gained 4.75% today, trading at $89,475 but still struggling to break the critical $90,000 resistance level.

With gold gaining momentum and Bitcoin closely tracking the Nasdaq’s historical patterns, McGlone warns that investors should brace for potential volatility. As macroeconomic pressures mount, the fate of Bitcoin and other risk assets remains uncertain, with analysts divided on whether BTC will defy historical trends or succumb to a correction.