Bloomberg Analyst Warns About Bitcoin, History May Repeat Itself

Bloomberg Intelligence senior commodity strategist Mike McGlone warned that Bitcoin's past market movements could repeat during the remainder of 2026. McGlone noted that deflation following high inflation could signal that Bitcoin's weakness is an early indication of a broader market downturn. The graph shared by McGlone showed that Bitcoin's 50-week moving average fell after the peak in 2025, while the S&P 500 continued to rise. Emphasizing that Bitcoin exhibited similar movements during past bear markets in 2018 and 2022, McGlone stated that this divergence should be monitored closely. He also mentioned that Bitcoin could lead changes in the direction of risky assets. McGlone indicated that the Federal Reserve's interest rate expectations were also reflected in the graph, with the difference between the one-year Fed funds futures contract and the near-term contract narrowing to approximately minus 0.77 points, signaling a 77 basis point rate hike expectation in the futures markets. He added that tight monetary policy and high valuations could pose significant threats to the markets.

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