Bitcoin’s performance compared to the S&P 500 suggests a downturn, as it remains significantly below its all-time highs against the index.
In a recent analysis on X, Bloomberg Intelligence senior commodity strategist Mike McGlone indicated that Bitcoin might be losing its leading position in the risk-asset race. McGlone referred to Bitcoin’s current state as suffering from a “hangover.”
Bitcoin has not only failed to reach its previous peak from March but also shows signs of broader systemic weakness. McGlone pointed out that Bitcoin’s value is currently about 11 times that of the S&P 500, which is near its own all-time highs. This is a decrease from the first quarter of 2020, when Bitcoin peaked at 15 times the value of the S&P 500—a record that remains unbeaten. McGlone speculated about a potential further decline, suggesting the ratio could halve from its historic high.
“Is the fastest horse signaling the race is over?” McGlone questioned, referring to Bitcoin’s performance.
“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 Bitcoin/SPX.”
Following his initial post, McGlone reiterated his views, suggesting that Bitcoin is continuing to “roll over” in the financial race.
“The fastest horse in the race may be signaling the race is over,” he wrote in response to a question about Bitcoin’s lackluster performance compared to other risk assets.
This underperformance is notable, especially when contrasted with assets like gold, which has reached new all-time highs this month, as reported by Cointelegraph.
