Bloomberg senior strategist Mike McGlone, one of the closely followed names in the crypto money market, made comments about Bitcoin and gold prices. However, the expert has caught the attention of investors by pointing to a potential rally for gold! Here are the details…
Bitcoin Strategist: Gold dominance could knock Bitcoin out!
As Cryptokoin.com reported, with the ongoing economic uncertainty around the world, investors are turning to many products that can provide potential protection. In particular, the orientation of corporate companies to the world of crypto money attracted the attention of many experts. In this respect, Gold and Bitcoin (BTC) are considered suitable options for many investors to provide the needed security.
However, Bloomberg senior strategist Mike McGlone suggested in an interview with Red Cloud TV on May 12 that gold will dominate at a time when the precious metal is trying to reach new highs and will continue to outperform Bitcoin in the coming months. According to McGlone, the possible superior performance is highlighted by factors such as the Bitcoin-gold ratio. He noted that while gold is no longer considered a primary investment asset, it still holds value as a risk-free asset as it maintains its bullish stance on Bitcoin. The expert name says the following in his statements on the subject:
I’m still bullish on Bitcoin, but I think gold will continue to outperform Bitcoin. Remember, I’m looking at factors like the Bitcoin golden ratio; around 14 per ounce. In this world where digitalization technology is advancing rapidly, you can no longer keep gold as an investment without a digital port, maybe even a few percent. I still consider it a risky asset.
Strategist: “Gold is far from a potential rally!”
McGlone also expressed his uncertainty about the potential rise in gold prices in the future compared to the leading crypto Bitcoin. However, the expert suggests that with inflationary pressure, both gold and Bitcoin are touted as possible safe-haven assets. Both asset classes have experienced significant growth in recent months, partly attributed to the ongoing banking crisis. McGlone’s latest view follows his previous analysis, which states that gold will outperform Bitcoin in a recession, especially when the stock market is plummeting. This is illustrated in a chart showing the 100-week moving average of both assets. That’s why the popular strategist states that gold is far from a potential rally.
On the other hand, gold-related exchange-traded funds (ETFs) rose 10 percent in the last two months. The benchmark stock index appeared before investors with a better performance than SPX’s 3 percent gain in this period. Momentarily, BTC is trading at $26,810 and is up 1.5 percent on a daily basis as the leading cryptocurrency tries to retrace the $30,000 level. The price of an ounce of gold is worth 2,010 dollars.
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