Bitcoin Is No Longer Scarce: New Strategy for Investors in 2026

Mike McGlone’s reassessment, senior strategist at Bloomberg Intelligence, has brought a significant shift in predictions about Bitcoin. The thesis that Bitcoin would maintain its appeal as a scarce and independent asset has faded, giving way to a very different reality. As reported by Cointelegraph, McGlone now advocates that investors adopt a more cautious stance, taking advantage of market rallies in 2026 to reduce their positions.

From the Promise of Scarcity to the Reality of a Saturated Market

Bitcoin was born as a revolutionary alternative — a genuinely scarce asset in a world of unlimited fiat currencies. However, this scenario has radically transformed. What was perceived as an external safeguard to the financial system has become an integral part of it, sharing the same vulnerabilities and dynamics as traditional exchanges.

McGlone notes that Bitcoin today is increasingly aligned with stocks, subject to the same macroeconomic pressures that move global markets. The essential characteristic that made it special — its nature as a scarce and decoupled asset — has lost practical relevance as more correlated and speculative assets flood the cryptocurrency ecosystem.

Warning Signs That Demand Attention

Speculative euphoria, amplified by the approval of Bitcoin exchange-traded funds (ETFs), has established a new market dynamic. The reduction of historical volatility levels, often interpreted as a sign of stability, may be masking deep vulnerabilities. McGlone highlights these indicators as important warnings of a potentially overheated market.

With Bitcoin priced at $83.92K at the moment (up 1.14% in 24 hours), the contrast between recent speculative gains and underlying fundamentals becomes increasingly evident. Capital flows into cryptocurrencies reflect less a structural confidence in the asset and more a behavior of seeking returns in a low-yield environment.

A Pessimistic Macroeconomic Perspective

McGlone’s assessment goes beyond the universe of cryptocurrencies. He identifies concerning signals across multiple asset categories — stocks, commodities, and precious metals — suggesting underlying economic instability. The surprising performance of gold, for example, does not necessarily indicate strength of that asset but rather reveals fragility and uncertainty in global markets.

When assets considered “non-conventional” begin to outperform their traditional peers, it signals that investors are seeking refuge, not growth. This dynamic warns of possible economic turbulence ahead.

What to Expect in 2026

McGlone’s practical recommendation is clear: taking advantage of the upward movements in 2026, investors should consider reducing their allocations. The scarcity that once defined Bitcoin has lost strength in an increasingly saturated market, where speculation and macroeconomic dynamics prevail over asset-specific factors.

For a more in-depth analysis of McGlone’s projections, including the specific indicators he monitors to assess potential declines, interested parties can watch the full interview on Cointelegraph’s official YouTube channel.