BTC price at 11x S&P 500 signals Bitcoin is 'rolling over' — Analyst

Bitcoin ( BTC ) is still “rolling over” as its value versus the SP 500 stays well clear of all-time highs.

In his latest analysis on X, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, suggested that the risk-asset race “may be over.”

McGlone: Bitcoin suffering from a "hangover"

Bitcoin has struggled to match its latest all-time high from March, but another metric suggests deeper systemic weakness.

BTC/USD, McGlone notes, is currently around 11 times the value of the SP 500 — which is itself near all-time highs.

In the first quarter of 2020, Bitcoin was on top, reaching 15 times the SP in a record which has never been beaten. By contrast, the future may see a 50% drop from that time.

“Is the fastest horse signaling the race is over?” McGlone queried.

“At about 11x now, the Bitcoin/SP 500 peak was 15x in 1Q20 and this years lower high was 14x. The biggest money pump in history and US ETF launches in past tense may suggest a hangover, pendulum swing back toward 7x Bitcoin/SPX.”

In subsequent interactions, he confirmed his theory that Bitcoin continues to “roll over.”

“The fastest horse in the race may be signaling the race is over,” he wrote while responding to a question over Bitcoin’s relatively lackluster performance versus other risk assets.

As Cointelegraph reported , that performance stands out versus that of gold as well as the SP 500. XAU/USD saw new all-time highs of its own this month.

BTC price risks "lower low" despite $60,000 rebound

BTC price action meanwhile continued to chop around $60,000 ahead of the Aug. 28 Wall Street open, per data from Cointelegraph Markets Pro and TradingView .

Related: Bitcoin exchanges are witnessing 3rd-biggest net daily outflow of 2024

After a snap liquidation cascade overnight, BTC/USD saw a fresh visit to $58,000 before halting its downside.

“Still no break in the trend,” popular trader Crypto Chase determined on the day, referencing a multi-month consolidation phase following the March highs.

“The bright side of all this consolidation is that a trend break should be a clear signal to all time highs. The not so bright side is that a lower low could be next (although I'd see that as a buying opportunity / should be bottom before ATH's).”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.