Bitcoin's Valuation Relative to Gold May Face Major Reset

According to Odaily, Bloomberg's senior commodity strategist Mike McGlone has suggested that Bitcoin's price relative to gold may have peaked and could be on the verge of a significant reset. McGlone analyzed that in 2024, the Bitcoin-to-gold ratio, which measures how many ounces of gold equal one Bitcoin, reached a peak of 40 times. This indicates that one Bitcoin was valued at 40 times the price of an ounce of gold. However, McGlone believes this situation may not be sustainable and could reverse in 2025. Overall, McGlone issued a clear warning that both the stock market and Bitcoin might revert to historical averages due to increased reversion risks. This implies that if Bitcoin is currently overvalued compared to gold, a substantial correction could occur.