Key Takeaways
- Mike McGlone warns that Bitcoin below $80,000 and copper below $6.40 could signal broader selling through year-end.
- Bitcoin’s retreat coincided with sharp technology stock losses and more than $1 billion in crypto liquidations.
- Sustained weakness across crypto, copper and equities would strengthen McGlone’s warning, while a lasting recovery would challenge it.
Bitcoin’s failure to hold $80,000 and copper’s retreat below $6.40 per pound could signal a broader wave of selling through year-end, according to Bloomberg Intelligence senior commodity strategist Mike McGlone.
Following the US midterm elections, McGlone identified the two thresholds as potential warning signs for investors across cryptocurrencies, commodities and equities.
His argument treats Bitcoin as an early indicator of speculative appetite, while copper’s relationship with stocks offers another measure of market confidence.
Simultaneous weakness, he suggested, could precede a more extensive retreat from risk.
Recent trading has added urgency to that warning, although the price moves alone do not establish that a sustained market cascade has begun.
Bitcoin Loses Ground as Technology Stocks Tumble
Bitcoin traded around $75,800 on Nov. 6, after an intraday low near $75,255, extending its retreat below McGlone’s closely watched threshold.
The decline followed a sharp reversal in US equities. On Nov. 5, the Nasdaq Composite fell 5.5%, while the S&P 500 lost 4.3%. Nvidia dropped 9.3% as investors sold artificial intelligence and semiconductor stocks, according to CoinDesk’s market coverage.
Bitcoin had initially rebounded after the election, briefly climbing above $81,000 on Wednesday before surrendering those gains. Its subsequent slide weakened the case that clearer political conditions would deliver an immediate, lasting recovery.
Leverage amplified the damage. More than $1 billion in cryptocurrency derivatives positions faced liquidation over a 24-hour period during Thursday’s selloff, predominantly bullish bets, CoinDesk reported, citing CoinGlass.
Bitcoin futures open interest also declined, indicating that traders were closing positions or exchanges were forcing them out. That provides a concrete mechanism through which falling prices can generate additional selling.
McGlone’s broader forecast remains conditional: a liquidation wave can deepen a decline without necessarily determining the market’s direction for the rest of the year.
Copper Adds an Industrial Warning Signal
Copper supplies a different perspective because of its role in construction, electronics, electricity networks and manufacturing.
Trading Economics’ indicative copper price stood around $6.24 per pound on Nov. 6, below McGlone’s $6.40 pivot and roughly 5% lower over the preceding month. Its figures track financial instruments rather than an official exchange settlement.
Bloomberg also reported that London copper had fallen to its lowest level since July. Concerns about the outlook for AI infrastructure investment and changing expectations for US copper tariffs weighed on sentiment following the election.
Those factors complicate a straightforward recession interpretation. Copper can weaken because investors reassess tariffs, inventories or particular sources of demand, even without an economy-wide contraction.
Nevertheless, pressure on both copper and technology stocks reinforces McGlone’s concern that previously popular trades are becoming vulnerable together.
What Would Confirm or Challenge the Warning?
The immediate question is whether Bitcoin can recover $80,000 and sustain demand above it.
Wintermute OTC trader Jasper De Maere identified $73,000 and $68,000 as potential downside levels, while saying Bitcoin needed to reclaim and hold $80,000 to demonstrate renewed strength.
Institutional flows offer another test. US spot Bitcoin ETFs lost about $515 million in October and roughly the same amount during November’s first two trading sessions, CoinDesk reported on Nov. 4. Persistent redemptions would leave other buyers needing to absorb that supply.
A convincing recovery in Bitcoin, copper and equities would challenge the cascade thesis. Continued weakness across all three, accompanied by further forced liquidations, would strengthen it.
For now, McGlone has identified a plausible warning pattern, with its year-end implications still dependent on subsequent trading.
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
