- Analysis by Mike McGlone
- Bitcoin Struggling with a Downturn
- Risks for BTC Price
Recently, Bitcoin continues to show weak dynamics compared to the S&P 500, causing concern among analysts.
Analysis by Mike McGlone
Mike McGlone, senior commodity strategist at Bloomberg Intelligence, recently stated that the risk-assets race may be over. He noted that the BTC/USD ratio is currently around 11 times the S&P 500 index, which is near its all-time high. > "At about 11x now, the Bitcoin/S&P 500 peak was 15x in 1Q20 and this year's 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," McGlone stated.
Bitcoin Struggling with a Downturn
McGlone is not the only one making such conclusions. The gap between BTC and the S&P 500 became especially evident after BTC failed to hold its new high set in March. Comparing performance over the past few months, analysts highlight Bitcoin's weak outcomes compared to other risk assets and gold, which recently hit new records.
Risks for BTC Price
Amid current instability, BTC prices hover around $60,000. Despite some recovery after the last drop, there is a risk of further reductions. According to popular trader Crypto Chase, current consolidation could lead either to new highs or further declines. As he noted: "The bright side of all this consolidation is that a trend break should be a clear signal to all-time highs. The not-so-bright side is that a lower low could be next, although I'd see that as a buying opportunity/should be bottom before ATHs."
Analysts continue to closely monitor developments as the market shows signs of change. Some experts believe the current consolidation is a sign of potential future growth, while others warn of the risks of further declines.
