$BTC BTC price at 11x S&P 500 signals Bitcoin is 'rolling over' — Analyst
Bitcoin may still be the "fastest horse" in the risk asset race, but its signals are anything but encouraging for bulls, says Bloomberg's Mike McGlone.
BTC
$59,549 #Appreciate
is still “rolling over” as its value versus the S&P 500 stays well clear of all-time highs.
In his latest analysis on X, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, suggested that the risk-asset race “may be over.”
McGlone: Bitcoin suffering from a "hangover"
Bitcoin has struggled to match its latest all-time high from March, but another metric suggests deeper systemic weakness.
BTC/USD, McGlone notes, is currently around 11 times the value of the S&P 500 — which is itself near all-time highs.
In the first quarter of 2020, Bitcoin was on top, reaching 15 times the S&P in a record which has never been beaten. By contrast, the future may see a 50% drop from that time.
“Is the fastest horse signaling the race is over?” McGlone queried.
At about 11x now, the Bitcoin/S&P 500 peak was 15x in 1Q20 and this years lower high was 14x. The biggest money pump in history and US ETF launches in past tense may suggest a hangover, pendulum swing back toward 7x Bitcoin/SPX.”
In subsequent interactions, he confirmed his theory that Bitcoin continues to “roll over.”
“The fastest horse in the race may be signaling the race is over,” he wrote while responding to a question over Bitcoin’s relatively lackluster performance versus other risk assets.
As Cointelegraph reported, that performance stands out versus that of gold as well as the S&P 500. XAU/USD saw new all-time highs of its own this month.
BTC price action meanwhile continued to chop around $60,000 ahead of the Aug. 28 Wall Street open, per data from Cointelegraph Markets Pro and TradingView.
After a snap liquidation cascade overnight, BTC/USD saw a fresh visit to $58,000 before halting its downside.#Write2Earn!
“Still no break in the trend,” popular trader Crypto Chase determined.
