Dogecoin Faces 1929-Style Reckoning, Bloomberg’s McGlone Warns
22 Março 2025 - 4:00AM
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Bloomberg Intelligence’s chief commodity strategist, Mike McGlone,
has issued a stark caution to Dogecoin holders and the broader
crypto community by drawing comparisons to historical instances of
market excess. In a series of recent posts published on X , McGlone
invoked the years 1929 and 1999—the notorious eras of the stock
market crash and the dot-com bubble—to underscore the risks of
speculative “silliness” in digital assets. Dogecoin Mirrors
1929-Style Risk He singled out Dogecoin in particular, emphasizing
its vulnerability to a potential market reversion, while also
pointing to gold as a beneficiary if risk appetite continues to
deteriorate. “Dogecoin, 1929, 1999 Risk-Asset Silliness and Gold –
The ratio of gold ounces equal to Bitcoin trading almost
tick-for-tick with Dogecoin may show the risks of reversion in
highly speculative digital assets, with deflationary implications
underpinning the metal,” he wrote. Related Reading: Analyst Says
Dogecoin Could Skyrocket 16% Any Moment The chart below shows how
closely the meme-inspired cryptocurrency’s market cap has mirrored
the Bitcoin-to-gold ratio. The tracking of these two metrics
suggests that whenever the relative value of Bitcoin to gold
experiences a shift, Dogecoin’s trajectory pivoted sharply,
exposing it to the same market forces that have historically
challenged highly speculative assets. McGlone’s broader thesis does
not end with Dogecoin. In another post, he turned attention to the
notion of gold reaching $4,000 per ounce, linking such a
possibility to dynamics in the bond market and to potential
declines across risk-on sectors, including cryptocurrencies. “What
Gets Gold to $4,000? 2% T-Bonds? Melting Cryptos May Guide – A path
toward $4,000 an ounce for #gold could require something that’s
typically a matter of time: reversion in silly-expensive risk
assets, notably cryptocurrencies,” he stated. He underscored that
if the US stock market were to remain under pressure, bond yields
might eventually be pulled lower by the comparatively meager 2% or
lower yields seen in China and Japan. Such a scenario, in McGlone’s
view, adds tailwinds for gold because a shift from relatively
high-yielding Treasuries to lower-yielding government bonds abroad
could drive investors toward alternative havens. Related Reading:
Analyst Predicts Dogecoin And Altcoins’ Next Surge – Here’s The
Timeline The chart shared by McGlone reinforces his analysis of
decelerating demand for risk assets. One visual, titled “Elevated
US Stocks, Bond Yields vs. China, Japan,” displays the persistent
divergence between US Treasury yields, which hover around the 4.19%
mark, and the comparatively subdued rates of Chinese and Japanese
government bonds, situated closer to 2% and 1.51% respectively. The
graphic also portrays the S&P 500’s market cap-to-GDP ratio,
which remains historically high despite recent volatility.
McGlone’s conclusion is that continued pressure on equity markets,
combined with global bond rates that sit well below US yields,
could accelerate a rotation into gold if investors perceive a
downturn in “expensive” asset classes, including risk assets like
Dogecoin. A third post addressed the broader altcoin market, with
McGlone pointing to Ethereum as a leading indicator of whether the
overall trend has turned bearish for digital assets. “Has the Trend
Turned Down? Ethereum May Guide – Ether, the No. 2 cryptocurrency,
is breaking down, with deflationary implications and gold
underpinnings,” he noted. At press time, DOGE traded at $0.16663.
Featured image created with DALL.E, chart from TradingView.com
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