CandleFocus

Bloomberg Strategist Expects Bitcoin to Drop Against Gold Amid Shift from Risk Assets

Author: Content Editor
Bitcoin's valuation compared to gold may decline as investors seek more stable assets amid economic uncertainties. Bloomberg's senior commodity strategist, Mike McGlone, suggests that Bitcoin's recent decline is due to investors shifting away from high-risk assets. The Bitcoin/Gold ratio reached its peak in March 2024, driven by enthusiasm over the introduction of Bitcoin ETFs and favorable market conditions. However, Bitcoin has started losing momentum against gold, with BTC currently trading at 22.42 ounces, a 34% decline from its peak. McGlone believes this decline could continue, possibly reaching a historical low of 15x compared to gold. This reversal is attributed to factors such as tapering speculative behavior and central banks tightening monetary policy. Bitcoin's performance against the S&P 500 has also declined, with the ratio potentially reaching 7x, marking a significant shift in investor sentiment. As risk appetite wanes, traditional stocks and even Bitcoin are losing appeal, leading investors to search for safer investments. The S&P 500/Gold ratio could also revert to 2x, according to McGlone.

Related News