If you think Bitcoin (BTC) has had a rough ride lately, Bloomberg Intelligence's Mike McGlone has some news that might make you wince. He's predicting that Bitcoin's value relative to gold could get cut in half over the next couple years.

The Gold Standard Problem

Right now, Bitcoin trades at approximately 20 times the value of gold. McGlone's call? By 2026, it's far more likely we'll see that ratio drop to 10x than climb to 30x. In other words, Bitcoin's purchasing power compared to the shiny yellow metal could take a serious haircut, even if the dollar price chart doesn't tell quite as dramatic a story.

Here's where it gets interesting: McGlone points out that the Bitcoin-to-gold ratio isn't just some abstract metric. It actually functions as an early warning system for recession risk. And the connections run deeper than you might expect.

Everything's Connected

The correlation between stocks, market volatility, and the Bitcoin-gold relationship sits near 0.5376, which is higher than most people realize. What does that mean in plain English? They're all part of the same "risk-on, risk-off" trade. When one moves, the others tend to follow.

McGlone's broader 2026 outlook paints a picture of deflation and risk-off conditions: core inflation cooling toward 1%, oil hovering around $40, gasoline near $2, and Bitcoin settling around $50,000.

What It Means For You

For investors treating Bitcoin and gold as alternative plays, this matters. A significant shift in their relative values could reshape portfolio strategies across the board. And given how tightly these assets correlate with broader market volatility, watching the Bitcoin-gold cross might tell you more about what's coming than you'd think.