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Bitcoin's Warning Signs: McGlone's Alert and Kiyosaki's Bullish Stance

Mike McGlone warns of Bitcoin's potential downturn as the BTC/XAU ratio crashes, while Robert Kiyosaki highlights Bitcoin's scarcity advantage over gold.
Published on 2025-05-07

McGlone's Bitcoin Warning: A Historical Low Against Gold

Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, has flagged a critical early warning sign for Bitcoin. Despite Bitcoin nearing its highest level against the S&P 500, the Bitcoin-to-gold ratio is crashing, indicating a divergence from traditional safe-haven assets. This ratio, which peaked in 2021, now shows Bitcoin becoming cheaper in gold terms, with fewer gold ounces needed to buy one Bitcoin. McGlone has previously predicted a significant price drop for Bitcoin, potentially losing a zero from its recent $100,000 level.

Bitcoin's Current Market Position

Bitcoin is currently trading at $96,953, having risen nearly 3% from $94,670 to $97,430. However, it dipped 1.08% ahead of the upcoming FOMC meeting, recovering 0.6% at the time of writing. This volatility underscores the delicate balance Bitcoin is maintaining in the market.

Kiyosaki's Preference for Bitcoin Over Gold

Renowned investor Robert Kiyosaki has expressed his preference for Bitcoin over gold and silver, citing its hard cap of 21 million coins as a key reason. Unlike gold and silver, whose supplies can increase with mining or drilling, Bitcoin's scarcity is immutable. Kiyosaki, who owns gold and silver miners as well as oil wells, emphasized that Bitcoin's limited supply makes it uniquely attractive in the long term.

Key Takeaways

  • Bitcoin's performance against gold is deteriorating, signaling potential weakness.
  • Scarcity remains Bitcoin's strongest advantage, according to Kiyosaki.
  • Market volatility persists as Bitcoin approaches key economic events like the FOMC meeting.

These insights provide a balanced view of Bitcoin's risks and strengths, offering investors a clearer perspective on its potential trajectory.

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