Mike McGlone Says Bitcoin’s Image as Digital Gold Undermined by Token Flood

Senior Bloomberg strategist Mike McGlone has cautioned that Bitcoin may be increasingly exposed to sharp corrections. In recent commentary, he argued that the world’s largest cryptocurrency has shifted toward behaving like a speculative commodity, making it prone to steep retracements following periods of rapid growth.

Good to know

• McGlone says Bitcoin’s role has shifted from digital gold to a speculative asset.
• He highlights that 21 million crypto listings weaken Bitcoin’s scarcity narrative.
• Bitcoin trades at around $114,500, showing little change in the past 24 hours.

From Digital Gold to Speculative Commodity

McGlone told his 70,500 followers on X that Bitcoin’s role has evolved since its creation. Once promoted as digital gold with a capped supply of 21 million, he now views it as more of a hype-driven asset. McGlone said:

“Digital gold or commodity? Bitcoin vs. 21 million offshoots – Bitcoin’s role may be shifting toward that of a speculative, hype-driven commodity, leaving it prone to sharp pullbacks after outsized rallies and potentially boosting the appeal of gold as a haven.”

He also pointed out that the growth of digital assets listed on CoinMarketCap — now around 21 million — undermines Bitcoin’s image as a scarce, capped-supply asset.

Commodity-Like Behavior

McGlone also drew parallels between Bitcoin and traditional commodities, which often undergo large corrections after extended rallies, saying:

“Bitcoin at $10,000? Commodity-like autocorrelation – commodities often retreat after outsized gains, a pattern that may apply to Bitcoin.

Initially hyped as digital gold with supply capped at 21 million vs. increasing demand and adoption, the price of the first-born cryptocurrency seemed destined to rise, and it did. But what was one digital asset in 2009 is now about 21 million listings on CoinMarketCap.”

Bitcoin is currently trading at $115,948 as per CoinMarketCap data, recording only a 1.8% uptick in the last 24 hours. Despite its long-term growth, McGlone’s analysis suggests that the growing number of cryptocurrencies could weaken Bitcoin’s scarcity story while increasing the appeal of gold as a traditional safe haven.