Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, has reiterated his prediction that Bitcoin might end up losing a zero.
McGlone has recalled that Nasdaq Composite, which tracks virtually all stocks that are listed on the Nasdaq exchange, peaked at around 5,000 back in 2000 when the dot-com bubble was about to pop.
The analyst is seemingly drawing a comparison between that peak and Bitcoin’s historic ascent to $100,000.
McGlone has noted that Bitcoin was born when the stock market bottomed following the global financial crisis (GFC).
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According to McGlone, Bitcoin has been the leader of “one of the greatest risk-asset rallies in history.”
The prominent analyst seemingly believes that risk assets have reached the peak of the large speculative cycle.
Is Bitcoin risk asset?
That said, many commentators have noted that Bitcoin performed surprisingly well earlier this week while the U.S. stock market was enduring a massive price correction. On Friday, the tech-heavy Nasdaq-100 index collapsed by more than 6% while the leading cryptocurrency remained basically flat despite being perceived as a risk-on asset.
The U.S. stock market lost a staggering $6.6 trillion on Thursday and Friday amid global economic uncertainty surrounding tariffs. According to McGlone, the U.S. stock market went up “too much,” and there is now a “worthy catalyst” for a drawdown that he believes will be enduring.
Notably, the price of gold, which has substantially outperformed Bitcoin this year, also recorded a massive drop.
If Bitcoin continues to decouple from stocks, the “safe haven” camp might end up emerging victorious.