Bloomberg analyst sends 2008 WTI oil warning on Bitcoin

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."