Bitcoin’s performance compared to the S&P 500 shows significant lag behind its all-time highs, which analysts believe indicates a potential downturn.
Bitcoin and S&P 500 Performance
Bitcoin is significantly below its all-time highs against the S&P 500 index. In the first quarter of 2020, Bitcoin peaked at 15 times its value compared to the S&P 500. Currently, this ratio stands at about 11 times.
Analysis by Mike McGlone
Bloomberg Intelligence senior commodity strategist Mike McGlone suggests that Bitcoin might be losing its leading position among risk assets. In his analysis, he refers to a potential further decline that could bring the Bitcoin/S&P 500 ratio down to 7 times. “Is the fastest horse signaling the race is over?” McGlone questioned, referring to Bitcoin's performance.
Forecasts and Future Expectations
McGlone continues to reiterate his views, suggesting that Bitcoin may continue to lose ground in the financial race. His comments highlight that the current situation with Bitcoin may reflect a broader systemic downturn. In the context of his analysis, gold has reached new all-time highs this month.
In conclusion, Bitcoin’s performance compared to the S&P 500 indicates a possible downturn. Mike McGlone's analysis underscores that Bitcoin may continue to lose its leading position among risk assets.
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