Bloomberg’s Mike McGlone suggests crypto assets could be due for price drops, comparing the valuations of Dogecoin and BNY Mellon, America’s oldest running bank.
Notably, the crypto market has never looked more promising. Bitcoin has set new price records above $100,000, several altcoins have seen their prices soar over 200%, and analysts are predicting prices will run higher amid anticipated regulatory and macroeconomic tailwinds, but amid the excitement, one analyst continues to offer a note of caution.
Is the crypto market overheated?
Dogecoin (DOGE) Valuation on the Rise: A Warning Sign?
Bloomberg Intelligence Senior Commodity Strategist Mike McGlone has warned that the crypto market may be showing signs of a looming “reversion.”
McGlone expressed this opinion in an X post on Monday, January 6, surmising views from a recent Bloomberg report. Citing Dogecoin’s (DOGE) rising market cap valuation, the analyst suggested that crypto assets were getting overvalued.
As McGlone highlighted, DOGE boasted a market cap of $55 billion on January 3, the same as Bank of New York Mellon, one of the oldest banks in the world and the first company to be listed on the New York Stock Exchange.
Pointing out potentially high market irrationality, McGlone highlighted that DOGE offered zero earnings while BNY Mellon was on pace to earn $19.1 billion in 2025.
Following up this warning in a separate post, McGlone touted the prospect of precious metals over Bitcoin and the broader crypto market, noting that the large number of crypto assets, 2.4 million or so, offered echoes of the dot-com bubble.
The 2.4 Million Bitcoin Wannabes vs. Gold, PGMs and Equities – #Dogecoin is one of the 2.4 million so-called #cryptocurrencies that future generations may look back upon akin to the dot-com bubble. The $68 billion market-cap apex of the coin created as a meme has 1999 inklings.… pic.twitter.com/dNvh1PcP1x
— Mike McGlone (@mikemcglone11) January 6, 2025
It is the second time McGlone has warned that the crypto market’s rally may be at its limits in the past month.
Gold Strength
On December 19, 2024, McGlone warned that Bitcoin and other risk assets may have reached their bull market cycle peak, citing the strength of gold in 2024.
As the Bloomberg strategist highlighted, gold managed to narrowly outperform the S&P 500, with which Bitcoin is strongly correlated, in 2024 despite the buzz around artificial intelligence. McGlone contended that gold’s strength suggested that investors may be anticipating looming headwinds for risk assets.
This view comes as investors tend to increase gold exposure to safeguard value in times of high uncertainty.
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Source: https://thecryptobasic.com/2025/01/06/comparing-dogecoin-cap-to-bny-mellon-bloomberg-analyst-suggests-crypto-market-could-be-due-for-crash/?utm_source=rss&utm_medium=rss&utm_campaign=comparing-dogecoin-cap-to-bny-mellon-bloomberg-analyst-suggests-crypto-market-could-be-due-for-crash