Bloomberg Analyst: Bitcoin Outpaces S&P 500, But Recession Could Shift Momentum

While the S&P 500 saw nearly a 10% drop, Bitcoin managed to recover to break-even levels for the year, which McGlone considered a strong showing for the leading cryptocurrency.

Crypto Faces Familiar Risks from Historical Market Crashes

Despite Bitcoin’s relative strength, McGlone cautioned that both stocks and digital assets could face significant pressure if the U.S. economy enters a recession. According to his analysis, Bloomberg Economics projects a potential 30% drawdown in U.S. equities under such a scenario.

He drew comparisons between today’s crypto markets and historical financial bubbles, including the 1929 Wall Street crash, Japan’s 1989 economic collapse, and the 2000 dot-com bust. McGlone warned that cryptocurrencies may be susceptible to similar downturns due to speculative behavior, volatility, and an oversupply of tokens.

READ MORE:

How to Invest in Bitcoin According to Former Goldman Sachs Executive

Bitcoin vs Gold: The Safe-Haven Showdown

McGlone also acknowledged that both Bitcoin and gold have posted 42% gains over the past year, well above the S&P 500’s 10% increase. He raised the possibility that Bitcoin could outperform gold in the next 12 months—particularly if stocks experience deeper declines.

He concluded that Bitcoin still holds potential as a decentralized hedge against traditional financial risks, especially in a climate of economic uncertainty and political debate over central bank independence.

The post Bloomberg Analyst: Bitcoin Outpaces S&P 500, But Recession Could Shift Momentum appeared first on Coindoo.