Bitcoin v. gold is ‘canary in the coal mine’ about to drop, warns strategist
Bloomberg Intelligence senior commodity strategist Mike McGlone has warned that Bitcoin’s (BTC) weakening performance relative to gold could be signaling deeper trouble for U.S. equities and broader risk assets. In his bearish outlook, McGlone pointed to the falling Bitcoin-to-gold ratio as a potential “canary in the coal mine.” He emphasized that the 33x level on this ratio is a critical threshold for maintaining investor confidence in riskier markets, as per his X post on June 22. “Falling Bitcoin vs. gold could be a canary in the coal mine for risk assets, putting an inordinate burden on the cross to stay above 33x,” he said. The caution comes amid a backdrop of historic market turmoil. Specifically, the S&P 500 fell nearly 20% in the first half of the year, wiping out around $13 trillion in market capitalization, over 40% of U.S. GDP. Bitcoin and gold ratio chart. Source: Bloomberg Intelligence McGlone noted this marked the largest GDP-re...