Bloomberg Senior Commodity Strategist Mike McGlone recently posted a warning that the relative strength of cryptocurrencies compared to precious metals has officially broken downward, indicating that by 2026, crypto assets may continue to underperform hard assets like gold.
(Background: Bloomberg analyst Mike McGlone: Bitcoin will still crash to $50,000, silver targets $50, and if a rebound occurs, it’s best to short)
(Additional context: Bloomberg strategist Mike McGlone: Gold, silver, and US stocks in 2025 have risen too much, facing correction risks this year)
Bloomberg Senior Commodity Strategist Mike McGlone recently stated on X that the performance of cryptocurrencies relative to precious metals has reached a critical turning point, breaking below an important support level. This may suggest that in 2026, crypto assets will continue to weaken relative to traditional hard assets like gold and other precious metals, which are more resilient.
Cryptos Breach Key Support vs. Metals –
Cryptos have dropped below a key pivot vs. metals, suggesting the trend will continue in 2026. Our graphic shows the ratio of the Bloomberg Galaxy Crypto Index (BGCI) vs. the Bloomberg All Metals Total Return Subindex (BCOMAMT) below… pic.twitter.com/n6A85HQeLT
— Mike McGlone (@mikemcglone11) February 10, 2026
Cryptocurrencies Break Below Support Relative to Precious Metals
Using the ratio of the Bloomberg Galaxy Crypto Index (BGCI) to the Bloomberg All Metals Total Return Subindex (BCOMAMT) as the basis for analysis, McGlone points out that this ratio has fallen below the critical level of approximately 510. This support level can be traced back to 2018, when the index base was set at 100 starting from 2017. Falling below this line suggests the trend may persist throughout 2026.
Long-term Trend Shift Shown in the Chart
According to the chart included by McGlone, after reaching a relative high in 2025, cryptocurrencies quickly declined, contrasting with the volatility of the US stock market (S&P 500’s 180-day volatility). The chart highlights several key levels, such as 511.05 and 398, emphasizing that the ratio is now well below previous high zones. He believes that since crypto supply is nearly unlimited, whereas supply of precious metals is limited, this structural difference is gradually reflected in their relative performance.
Notably, McGlone has repeatedly mentioned in recent analyses that after an “excessive rise” in the crypto market in 2025, a correction phase may occur. Meanwhile, precious metals face similar high-price adjustments but remain resilient overall. He likens cryptocurrencies to a “flock of pigeons,” while precious metals are like “a few pigeons,” implying that the former are more volatile and emotion-driven. McGlone emphasizes that investors should reassess the relative attractiveness of crypto versus hard assets in their asset allocation, especially as market volatility may intensify in 2026. Close attention to the changes in these index ratios and macroeconomic factors affecting risk assets is crucial for making more cautious decisions.
Further reading: Bloomberg strategist Mike McGlone warns: Bitcoin will drop to $50,000 next year before crashing to $10,000
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