Mike McGlone, the senior commodity strategist at Bloomberg Intelligence, has issued an important Bitcoin warning, commenting on its rivalry with gold in the market.

The expert suggests that Bitcoin may have peaked versus gold and now a Great Reset might be coming.

Great Reset on horizon for Bitcoin

Mike McGlone started his tweet, suggesting that Bitcoin may have reached a historic peak against gold and that market may be in for a big correction – a “Great Reset.”

In 2024, the Bitcoin-to-gold ratio (i.e. how many ounces of gold are equal to one BTC) peaked at 40x, which implied that one Bitcoin was worth at 40 times a gold ounce. However, McGlone seems to believe that this might be unsustainable and is likely to reverse this year.

He also mentioned the US stock market-cap-to-GDP ratio – this metric hit 2.2x. Historically, the expert continued, such peaks were seen back in 1929 and 1999 before tremendous market crashes. In those years, the US faced the beginning of the Great Recession and the crash of the dot-com bubble.

Overall, McGlone’s tweet contains a clear warning that the stock market and Bitcoin are likely to head back to their historic averages as he mentions “elevated reversion risks.” This means that if currently Bitcoin is overvalued compared to gold, then BTC could stage a major correction.

McGlone's gloomy Dogecoin prediction

Ten days ago, McGlone voiced a similar prediction, saying that Bitcoin could lose one zero from $100,000 and head back to the $10,000 level for a similar reason – investors are beginning to turn towards gold with their backs to Bitcoin, which is proved by massive inflows into gold ETFs and outflows from Bitcoin exchange-traded funds.

Last week, a similar warning was made by McGlone not only about “digital gold”, Bitcoin, but the legendary meme cryptocurrency Dogecoin. He stated that the gold-to-Bitcoin ratio was closely resembling DOGE price action, adding that investors are likely to start withdrawing funds from DOGE and BTC and move them into gold.

Strategy grabs almost 7,000 BTC

Today, Michael Saylor announced on the X platform that his company Strategy (formerly MicroStrategy) has made yet another big Bitcoin acquisition. The Bitcoin-focused firm has added 6,911 Bitcoins to its enormous stash.

That amount of BTC cost Strategy roughly $584.1 million. After this purchase, the company’s crypto holdings comprise 506,137 BTC worth approximately $33.7 billion.