Bitcoin, Gold Have ‘Blown Their Tops,’ Bloomberg's McGlone Warns

Bitcoin (CRYPTO: BTC) and gold have "blown their tops," Bloomberg Intelligence strategist Mike McGlone said Monday, pointing to a stock market correction as the trigger that could drag both lower heading into Tuesday’s midterm elections.

Why McGlone Sees All Risk Assets Rolling Over Together

McGlone said on The Wolf Of All Streets podcast that Bitcoin, gold and silver have all pulled back to key support levels alongside a broader equity correction, calling it a Faustian bargain starting to unwind. 

A chart overlaying Bitcoin, gold and the S&P 500 (NYSE:SPY) on 50-week moving averages shows gold just beginning to roll over while Bitcoin already has, he said.

The real signal to watch, McGlone argued, is whether the S&P 500 closes lower this week, calling that outcome "the beginning of potentially the biggest reset of a lifetime." 

Correlations between gold, copper and the S&P 500 are running at record highs on a 50-week basis, he noted, meaning a stock pullback would likely drag commodities down rather than lift them as a safe haven.

Why McGlone Doesn’t Buy the ‘Markets Always Rally After Midterms’ Thesis

McGlone pushed back on the popular narrative that stocks reliably rise after midterm elections, warning that widespread consensus on any single outcome usually signals danger. 

He pointed to Bitcoin’s drop toward its 50-week moving average, a rolling housing market, and a sharp pullback in natural gas as signs a broader deflationary shift is underway.

Fellow guest Mario Nawfal pushed back on the crypto reaction specifically, noting Bitcoin only fell 4% to 5% during the week of the Binance hack, even as Intel dropped 30% and Alphabet fell 12%. 

He called that relative strength, not confirmation Bitcoin is rolling over.

Why the Debt Ceiling Could Hit Sooner Than Expected

Nawfal flagged the debt ceiling, set at $41.1 trillion against a national debt already above $40.5 trillion, as an underappreciated risk that could surface before year-end rather than its usual March timing. 

He compared the setup to 2011, when a debt ceiling standoff triggered a US credit downgrade from S&P and sent gold from $1,400 to $1,900.

Central banks have been accumulating gold at a record pace since 2022, Nawfal said, framing the metal as an emerging reserve asset rather than a traditional inflation hedge:

• 2021 purchases: $26 billion
• 2025 purchases: $96 billion

He also pointed to a Bank of England consultation paper exploring whether gold should be tokenized for financial market liquidity, calling it a sign institutional interest extends well beyond retail demand.

McGlone and Nawfal agreed the Fed faces a difficult choice heading into December, caught between inflation still above its 2% target and a stock market already showing signs of fatigue.

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