According to Bloomberg strategist Mike McGlone, Bitcoin appears overvalued versus gold, and a correction toward $50,000 is possible.

Valuation gap versus gold

McGlone highlights that the Bitcoin-to-gold ratio has risen to about 20x, exceeding models that indicate fair value closer to 13x.

He refers specifically to a Bloomberg Economics assessment that places the historical-balanced ratio substantially below current readings.

Market complacency and volatility

The strategist also notes that unusually low volatility in equity markets can signal complacency and precede declines across risk assets.

In McGlone’s view, such market self-assurance often foreshadows corrections that may affect cryptocurrencies, including Bitcoin.

Implications for Bitcoin prices

Connecting valuation disparities and low market volatility, McGlone suggests Bitcoin could experience a corrective move toward $50,000.

He frames this outcome as a risk scenario rather than a forecast, pointing to valuation metrics and sentiment indicators as the basis for concern.

What investors are watching

Market participants will likely monitor the Bitcoin-to-gold ratio and measures of equity volatility for signals about potential shifts in risk appetite.

According to Bloomberg strategist Mike McGlone, these indicators are central to assessing the probability and extent of any correction.