Key Takeaways:
- Bloomberg Galaxy Crypto Index may decline toward lower support, signaling a delayed but clearer crypto entry opportunity.
- Mike McGlone indicates crypto market pressure persists as volatility and expanding supply continue limiting sustained momentum.
- Bitcoin’s prior surge above $100,000 may mark a lasting peak if Bloomberg Galaxy Crypto Index weakness continues.
Bloomberg Galaxy Crypto Index Faces Deeper Support Test
A potential buying opportunity in cryptocurrency markets may emerge after further declines, according to Bloomberg Intelligence’s senior commodity strategist Mike McGlone. He indicated that the Bloomberg Galaxy Crypto Index (BGCI) could drop another 50% from its 2025 peak near 4,000, pointing to further downside before any recovery in performance.
McGlone said on social media platform X on April 26:
“There’s going to be a great time to buy cryptos — it just may be after another 50% decline in the Bloomberg Galaxy Crypto Index.”
The strategist explained that over roughly the past five years, the Bloomberg Galaxy Crypto Index has remained flat, even as the S&P 500 nearly doubled during that span. The index has shown approximately four times the volatility compared to the S&P 500, while still failing to maintain a consistent upward trend.
The chart he shared shows the BGCI hovering just above 2,000 on April 23, a level first reached in 2021. It also marks the index’s 2025 high near 4,000 and a lower reference point around 1,000. McGlone described the pattern as “same-chart-syndrome” with the S&P 500 relative to its 200-day moving average, noting that crypto remains highly correlated to beta but has been unable to hold gains.
“Oversupplied, overhyped, and overpriced is our view of the crypto market,” he described. “It may require a low-price cure to improve performance.”
Crypto Supply Pressure Challenges Market Momentum
The crypto market has expanded significantly since Bitcoin’s introduction in 2009, with millions of additional cryptocurrencies now listed. This growth has contributed to what McGlone views as effectively unlimited supply within the market. Crypto assets have struggled to sustain higher prices, with repeated pullbacks reflecting ongoing volatility and supply pressure.
The surge above $100,000 in bitcoin during 2025 may represent a lasting peak under current conditions. The 1,000 level was cited as a potential BGCI support level. The strategist detailed:
“The 2025 rush above $100,000 in the firstborn may have set a lasting peak. A low-price BGCI cure could be near 1,000”
This view followed McGlone’s earlier warning that bitcoin may face bear-market pressure if performance since spot bitcoin ETFs began trading is a guide. He pointed to elevated volatility, tighter equity correlation and excess crypto supply as risks. The Bloomberg Intelligence strategist previously stated: “My bias is the crypto bust may be just beginning. There was one in 2009 — bitcoin — and now there are millions, most tracking little of substance yet still valued in the billions. Bitcoin may revisit $10,000, especially if beta declines.”
