Bitcoin Price Faces 50% Drop Against Gold Amid “5-Year Curse” Fears

TLDR

• Bitcoin’s price has dropped against gold, with the Bitcoin-to-gold ratio reaching its lowest point in five years.
• Mike McGlone warns that Bitcoin could experience a 50% drop in value relative to gold, revisiting the 10-zone.
• The cryptocurrency’s failure to break the $100,000 mark in 2025 indicates a lack of upward momentum.
• Bitcoin’s weak performance in 2026 raises concerns of further declines, potentially reaching as low as $10,000.
• McGlone highlights that Bitcoin’s price has been affected by low volatility since late 2022, increasing its risk of decline.

Bitcoin has recently shown signs of weakness, according to Mike McGlone, Bloomberg’s senior strategist. McGlone suggests that Bitcoin’s golden decade may be fading as its value against gold drops. The Bitcoin-to-gold ratio fell to 20.18, a figure that mirrors where it stood five years ago, reigniting fears of a possible further decline.

Bitcoin Price Drops: A Return to 10?

The Bitcoin-to-gold ratio recently decreased, a trend that has sparked concern for investors. McGlone’s analysis points to the possibility of the ratio revisiting the 10 zone, last seen during Bitcoin’s deepest consolidation phase.

This decline follows the sharp drop of Bitcoin’s price, which had reached a high of 40 in late 2024. McGlone’s central thesis is that Bitcoin’s overperformance has been unsustainable, driven by speculative hype rather than fundamentals. With the ratio now at a five-year low, the cryptocurrency faces pressure to revert, possibly witnessing another 50% drop in value relative to gold.

The risk of Bitcoin losing more value is heightened by the failure to surpass the $100,000 mark in 2025. The cryptocurrency has struggled to break through the $100,000 level, signaling a weakness in its growth potential. McGlone notes that the yearly chart of Bitcoin shows a rollover below its 200-day moving average, signaling a lack of momentum.

This failure to maintain upward movement could be setting the stage for further declines. Bitcoin’s price has seen weak rebounds heading into 2026, adding to concerns of a larger correction. McGlone sees the potential for Bitcoin’s price to test the $50,000 level before experiencing a more severe overshoot, possibly dropping as low as $10,000.

Rising Risks and Declining Volatility

Over the last decade, Bitcoin’s price movements have been closely tied to the performance of the S&P 500 and low volatility. However, since late 2022, the volatility index has remained low, raising concerns about Bitcoin’s future performance. McGlone warns that if the volatility in equity markets increases, speculative assets like Bitcoin could experience sharp declines.

Bitcoin’s price has been highly correlated with market liquidity and suppressed volatility in recent years. But with the low volatility since 2022 and a potential shift in market sentiment, Bitcoin’s price could face greater risk. McGlone’s analysis suggests that Bitcoin could see a 50% decline before the market stabilizes.

Despite the recent downward trend, Bitcoin’s price remains a focal point for investors. With the ongoing challenges in the market, McGlone’s forecast points to a tough period ahead for Bitcoin, with a possible reversion to historical lows.

The post Bitcoin Price Faces 50% Drop Against Gold Amid “5-Year Curse” Fears appeared first on CoinCentral.