Market Sentiment Shifts Amidst Commodity Divergence
Market sentiment around Bitcoin shifted after comments from Bloomberg Intelligence Senior Commodity Strategist Mike McGlone surfaced on X. McGlone warned that Bitcoin may have reached an overheated phase as investors increasingly rotate toward defensive assets. His warning has sparked renewed debate over whether the crypto rally can withstand mounting macro pressure.
McGlone pointed to commodities as the primary signal for Bitcoin’s potential downturn. Gold has surged 65% in 2025, climbing above $4,000 as investors seek protection from inflation and economic slowdown. Meanwhile, oil prices have dropped nearly 20% to about $60 per barrel due to weak demand and oversupply. He noted that this gap represents the largest gold-oil imbalance ever seen under similar economic conditions.
Bitcoin Faces Growing Risk Amid Commodities’ Divergence
Beyond the commodity shifts, McGlone emphasized how risk assets, like Bitcoin, tend to underperform when safe-haven assets experience strong inflows. Historical trends show that periods marked by significant gold inflows often precede weakness in speculative markets like crypto. As such, Bitcoin’s recent strength may not reflect sustainable demand, and McGlone suggests the asset could be mispriced in the current market environment.
Stocks Too Hot, or Commodities Too Cold? At 85%, the 2025 disparity between rising gold and falling crude oil was the greatest ever in a year when Bitcoin may have peaked. Is it a warning or a feint? My bias leans toward the former. Full report on the Bloomberg here:…
Significantly, Bitcoin’s price action supports concerns around overheating. The asset surged aggressively in October 2025, peaking at $126,198.07 before losing momentum. Since then, sharp volatility has dominated trading activity. Over the past 30 days, Bitcoin fell to $84,000 before stabilizing above key support levels.
At press time, Bitcoin traded at $95,076.40, reflecting a 0.99% daily decline. The price fluctuated between $95,103.24 and $97,015.35 during the session. Trading volume also dropped 24.88% to $43.8 billion, indicating reduced speculative participation. Miner sell-offs have increased circulating supply, adding pressure to Bitcoin’s short-term price stability.
Market Caution Grows as Bitcoin Faces Resistance
Furthermore, repeated rejection near the $96,000 level has caused traders to grow cautious. With low volume continuing, Bitcoin’s potential to break through this resistance becomes uncertain. Nonetheless, Bitcoin dominance remains elevated at 59.17%, highlighting that investors continue to favor the cryptocurrency over altcoins, despite overall market anxiety.
Veteran Bitcoin critic Peter Schiff echoed similar concerns, urging investors to sell their Bitcoin holdings before the next potential downturn. His views align with McGlone’s, both of whom see an increased risk of further price declines.
Despite the bearish outlook from some analysts, others remain more optimistic. Bitwise executive Matt Hougan believes Bitcoin could follow gold’s explosive growth if ETF demand continues to build. The market remains focused on whether Bitcoin can hold above $93,000 and avoid a deeper correction in the near term.