Bitcoin May Be Last Defense Against U.S. Crisis, Strategist Warns

• Bitcoin as a barrier against economic crisis
• Overvalued stock market worries analysts
• Gold's rise reinforces signs of global stress

Bloomberg Intelligence strategist Mike McGlone warned that Bitcoin's strength could be a decisive factor in averting a potential economic crisis in the United States. In his recent analysis, the expert noted that the leading cryptocurrency needs to remain resilient to prevent a collapse similar to previous deflationary periods.

According to McGlone, "staying stable may be a key prerequisite for the U.S. stock market to avoid a typical post-inflation deflationary crisis." The current valuation of the stock market at approximately 2,3 times nominal GDP is seen by the strategist as an indication that prices may be excessively high, suggesting that "the stock market is the economy."

If Bitcoin/Gold Has Peaked, What of US Stocks?
Staying lofty might be a top prerequisite for the US stock market to avoid a typical deflationary downturn following inflation. That undue burden appears to have shifted to Bitcoin.
Full report on the Bloomberg terminal here:… pic.twitter.com/FWX2wRXssM

- Mike McGlone (@ mikemcglone11) October 18, 2025

Historically, this indicator tends to return to more sustainable levels, such as the 1,75 times GDP observed after 2020. McGlone also highlighted that the prolonged weakness of cryptocurrencies relative to precious metals may indicate that this correction has already begun to gain momentum in the financial environment.

The warning comes as trade tensions between the United States and China are once again gaining prominence, putting pressure on global markets. With U.S. President Donald Trump reaffirming a tougher stance in international negotiations, Bitcoin faces a risk of falling toward the $100.000 range if investor confidence is shaken.

Another point raised by the strategist involves the behavior of gold, which recently reached new highs above $4.200, while crude oil fell. This contrast, according to McGlone, points to an environment of growing economic stress, where investors seek protection in assets considered safer.

This movement mirrors the trajectory of previous recessionary periods, in which capital tends to migrate to safe-haven assets as industrial commodities weaken. For McGlone, a possible trigger for a reversal in the fourth quarter could be a resurgence in market volatility.

Currently, the S&P 500's 90-day volatility is at its lowest level in five years, and a recovery in this indicator could act as a catalyst, leading to a repricing of risk or accelerating the correction already expected by the traditional market.