Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, recently proposed an intriguing perspective on the ongoing debate between Bitcoin and Gold, suggesting that gold might outshine Bitcoin in 2024, citing the uncertainties surrounding the potential launch of Bitcoin ETFs as a game-changer.
Mike McGlone’s comments bring attention to the potential dynamics between Gold and Bitcoin in the coming year, especially in the context of the anticipated launch of a spot Bitcoin Exchange Traded (ETF).
According to McGlone, the crypto market, led by Bitcoin, influenced the performance of various risk assets in 2022, only to rebound in 2023. This prompts the question of whether Bitcoin’s high market-beta status could lead to a reversion in market behavior, favoring Gold.
Notably, Market beta measures an asset’s sensitivity to overall market movements. In the case of Bitcoin, its performance has often been closely tied to broader market trends, making it susceptible to fluctuations in risk sentiment.
McGlone suggests that the potential reversion of very low stock market volatility might be guided by analyzing the Bitcoin/gold cross, indicating the comparative behavior of the two assets during different market conditions.
Traditionally, gold has been considered a safe haven, a hedge against economic downturns, and a store of value. The metal has weathered several financial storms and emerged as a symbol of stability. In 2023, the gold price soared to an impressive $2,100 per ounce, reinforcing its status as a reliable investment during recessionary fears. Gold’s historical resilience during times of economic turbulence positions it as a preferred asset for risk-averse investors.
On the flip side, Bitcoin has made waves as the digital gold of the crypto market, especially in the face of a potential Bitcoin ETF approval. Its decentralized nature and limited supply have attracted investors seeking an alternative store of value. However, Bitcoin’s journey has been marked by extreme volatility, with price swings often exceeding those of traditional assets.
Despite McGlone’s stance, prominent figures like Blockstream CEO Adam Back envision a future where digital gold, represented by Bitcoin, could surpass physical gold in value. Back speculates that a price of around $700,000 per Bitcoin could trigger this transition.
Nasdaq-listed VivoPower has stepped up its digital treasury goals with a fresh capital raise aimed…
Solana increased in price by 5% to approximately $219 following a $2 billion Solana treasury…
The XRP Ledger (XRPL) has launched the Multi-Purpose Token (MPT) standard, designed to simplify and…
The U.S. Securities and Exchange Commission has announced plans to streamline its operations amid the…
Pi Network has now added two new features to its Testnet. These are a decentralized…
U.S. private payrolls unexpectedly fell in September, raising market bets that the Federal Reserve will…