As investors become increasingly concerned that the United States is heading into a recession and financial experts are speculating the various asset classes that will perform well, Mike McGlone, senior commodities specialist at Bloomberg, has provided insight that gold could outperform Bitcoin in such an economic downturn. The evidence of this possibility is demonstrated in a chart showing the 100-week moving average of both gold and Bitcoin.

McGlone claims that momentum and a declining US economy could be beneficial for gold, as it usually has a positive correlation with rising interest rates, with gold reaching its highest level in more than two decades this month. In opposition, Bitcoin is more closely correlated to the stock market and is presently showing a 3.19% downward shift on the day.

Fundamentally, McGlone believes that should Bitcoin manage to maintain a price greater than $30,000 it will act as initial indication that the tide is turning. Société Générale’s strategist Albert Edwards has gone as far to say that the leading indicator for the US is signaling that the recession is a done deal and the collapse of margins and profits is inevitable.

To summarise, if the US economy is headed into a recession, gold could present as a strong investment option in comparison to Bitcoin, while careful monitoring of the cryptocurrency’s trajectory above the $30,000 benchmark will give valuable insight into the crypto's performance. Although Edwards has a particularly dire prediction, it is worth noting that McGlone believes that the worst is far from over and a soft landing is still possible.



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