Bloomberg’s Senior Commodity Strategist Mike McGlone recently shared his views on the evolving relationship between Bitcoin (BTC) and gold.
The analyst suggests that BTC may be on its way to displacing gold bullion, as evidenced by the rapidly expanding Bitcoin network and the decline in holdings in gold-linked exchange-traded funds versus the soon-to-be-launched US spot ETFs.
McGlone acknowledges that Bitcoin has recently shown a different strength to stocks and bonds, although he remains bullish on gold, especially if the US enters a recession. According to McGlone, this shows that BTC is maturing and diversifying.
The strategist also notes that what was once a resistance in the BTC-gold coefficient of around 10x through 2020 may now be turning into permanent support. According to McGlone, the inevitable approval of US spot Bitcoin ETFs will strengthen Bitcoin’s position as it continues to penetrate mainstream markets.
However, with approximately 3.5 times the annual volatility of gold, Bitcoin remains a risky asset and is particularly susceptible to the ebb and flow of a recession, according to the analyst. Bloomberg Economics predicts that a recession will begin in the USA towards the end of the year.
Source:en.bitcoinsistemi.com
