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While investors think a price rally is the best thing ever and the Bitcoin (BTC) community was euphoric when the top cryptocurrency hit $100,000 for the first time in December 2024. Bloomberg Intelligence’s senior commodity strategist Mike McGlone however doesn’t think in such bullish terms.

On Sep. 23, McGlone shared a price chart comparing Bitcoin and the West Texas Intermediate (WTI) crude oil to warn that the cryptocurrency could follow the oil benchmark’s downward slide since its first monthly close above $100 a barrel in February 2008.

In 2008, the United States and Canada faced a combined crude oil and liquid fuels deficit of 10 million barrels a day. But the figure could turn into a surplus of nearly 9 million barrels a day by 2027, the analyst said.

Sufficient fuel supply has ensured that the WTI crude oil price has failed to rally beyond $100 a barrel despite momentary price surges. It is currently trading around $95 a barrel.

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‘Similar rules of supply-and-demand economics’ may pressure Bitcoin

McGlone warned that like WTI, Bitcoin’s $100,000 price mark could also become the ceiling it wouldn’t be able to surpass due to “similar rules of supply-and-demand economics.”

Oil prices are frequently subject to geopolitical conflicts, weather changes, and fuel policy. Bitcoin proponents believe the cryptocurrency is immune to such pressures but McGlone argues otherwise.

The Bloomberg analyst is well-known for a skeptic view of Bitcoin and has frequently predicted it will crash to $10,000.

Bitcoin was trading at $83,587 at the time of writing, as per Decibel.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research before making any investment decisions.

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