Crypto Losing to Gold? Bloomberg Analyst Says Watch This

In Brief

• Key Takeaways:

Amid a lot of turbulence across markets, a new chart shared by Bloomberg Intelligence analyst Mike McGlone has highlighted a striking divergence between cryptocurrencies and precious metals, and it could be signaling a deeper structural risk.

McGlone highlights long-term underperformance of crypto vs. precious metals.
BGCI has flatlined against GLTR since 2017 despite survivor bias.
Weakness could worsen if the stock market declines.

Crypto vs. Precious Metals: A Divergence to Watch

Specifically, McGlone has resurfaced a long-running structural concern in crypto markets that, despite booming narratives and waves of innovation, crypto performance relative to precious metals has stagnated for years, according to the analysis he shared in an X post from November 9.

*Crypto vs. precious metals performance. Source:* *Mike McGlone*

As it happens, the prominent analyst has compared the Bloomberg Galaxy Crypto Index (BGCI) with the ABRDN Physical Precious Metals ETF (GLTR). His chart highlights two trends – precious metals steadily outperforming crypto since 2017 and the BGCI/GLTR ratio returning to support levels seen during past market stress.

Furthermore, he noted that despite crypto’s fast-evolving ecosystem, the index’s survivor bias, tracking only 12 of the strongest names, should theoretically work in crypto’s favor. Instead, crypto is lagging, which raises a broader question of what this means for the rest of the market in the long run.

Macro Pressure Mounting

McGlone has linked this underperformance with broader macro trends. Historically, when the stock market weakens, crypto assets often follow, sometimes with amplified volatility.

Gold, silver, and other physical assets tend to benefit from market uncertainty. Crypto, on the other hand, remains tightly correlated to risk sentiment. With the stock market in the United States already showing signs of strain, McGlone has warned that the BGCI/GLTR divergence may be a leading signal of further weakness.

For the moment, the crypto market’s representative asset, Bitcoin (BTC), is trading at $106,417.84, recording an increase of 4.38% on the day, having declined 0.78% across the past week, and accumulating a loss of 4.70% over the month, according to the most recent price data.

*Bitcoin price 24-hour chart. Source:* *CoinMarketCap*

All things considered, McGlone’s takeaway aligns with his long-standing thesis that crypto remains a high-beta asset class that struggles when liquidity tightens and when traditional markets bull back. Whether crypto can break this pattern will likely depend on a resurgence in adoption, clearer regulations, new institutional capital inflows, and a shift in macro trends.