Bloomberg Strategist Says Gold May Outshine Bitcoin (BTC) in 2024

Godfrey Benjamin
December 17, 2023
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Gold Price Tumbles Ahead US FOMC Meeting, Bitcoin to Follow?

With the rivalry between Bitcoin (BTC) and Gold an eternal one, top Bloomberg Intelligence Strategist, Mike McGlone has hinted what the trend between both assets might be like in 2024.

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Bitcoin (BTC) vs Gold in 2024

While the growth potential of Bitcoin is high in the coming year, the Bloomberg Strategist is not ruling out the potential of Gold to pull some intriguing performances as well. 

According to McGlone, should the US eventually end up in a recession as is being forecasted, then Gold may have an upper hand over Bitcoin. This is because the Bitcoin-to-gold cross rate appears to be gaining underpinnings from a rising stock market. This trend is bound to impact Bitcoin, generally perceived by the stock market as a risk-on asset.

While Bitcoin (BTC) typically correlates with some stock market indices, most of this correlation has been decoupled in the past few months as the nascent asset class gained impressive price traction. While a recession may place Gold in a vantage position over Bitcoin, McGlone claims that the failure of the S&P 500 to drop when this recession sets in may help Bitcoin continue outperforming Gold in the mid-term.

With the United States inflation rate at a relatively lower level per latest projections, the Federal Reserve has kept interest rates flat, a move that signals to investors that a crucial pivot may be underway. Should the Feds implement a rate cut soon, it might automatically empower Bitcoin (BTC) as the inflow of cash into the economy might weaken the Dollar and strengthen Bitcoin considerably.

Either path the economy trails in 2024, chances are Bitcoin may keep up with the impressive performance that has seen it record a more than 151% growth in the Year-to-Date (YTD) period.

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The Bitcoin ETF Catalyst

Irrespective of the recession outlook for next year, a potential approval of the Bitcoin Exchange Traded Fund (ETF) product by the United States Securities and Exchange Commission (SEC) can shift the odds of the best performance in the coin’s favor.

The odds of approval of this product, according to Bloomberg analysts, are now pegged at 90% and the approval window is set for early January. While investors and market participants await the SEC’s feedback, Bitcoin remains in the lead over gold as the superior asset in terms of growth rate.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.