Mike McGron, a senior commodities analyst at Bloomberg Intelligence, reiterated his forecast that Bitcoin might ultimately lose zero.
McGron reminded us that the Nasdaq Composite, which monitors nearly all stocks on the Nasdaq Exchange, reached a high near 5,000 in 2000 just before the Dot-Com Bubble burst.
It seems that analysts are paralleling this peak with Bitcoin’s historical surge to $100,000.
McGron emphasizes that Bitcoin emerged when the stock market hit its lowest point after the global financial crisis (GFC).
According to McGron, Bitcoin has led “one of the largest gatherings of risk assets in history.”
Prominent analysts seem to be concluding that risk assets have hit the peak of a significant speculative cycle.
Are there risk assets for Bitcoin?
Many observers have pointed out that the US stock market has endured a substantial price correction while Bitcoin performed unexpectedly well earlier this week. On Friday, the tech-heavy NASDAQ-100 index plummeted over 6%, yet the leading cryptocurrencies largely remained stable despite being considered risk-on assets.
The US stock market suffered a staggering $6.6 trillion loss on Thursday and Friday due to global economic uncertainties regarding tariffs. According to McGron, the US stock market may be “too much,” and there is now a “valuable catalyst” for drawdowns that he views as permanent.
Specifically, the value of gold, which has greatly outperformed Bitcoin this year, has also seen considerable declines.
If Bitcoin continues to diverge from stocks, the “safe haven” camp might emerge victorious.
