Crypto News- As the perpetual contest between Bitcoin (BTC) and Gold endures, Bloomberg Intelligence Strategist Mike McGlone offers insights into what the dynamics between these assets might look like in 2024.
Bloomberg Strategist Predicts Gold Could Outperform Bitcoin (BTC) in 2024
McGlone acknowledges the considerable growth potential for Bitcoin in the upcoming year but doesn’t dismiss the intriguing prospects that Gold might present. He suggests that in the event of a projected recession in the United States, Gold could hold an advantage over Bitcoin. The rationale behind this lies in the Bitcoin-to-gold cross rate, which seems to be influenced by an ascending stock market. Such a trend might impact Bitcoin, traditionally perceived as a risk-on asset by the stock market.
Although Bitcoin typically exhibits correlation with certain stock market indices, much of this correlation has unraveled in recent months as the emerging asset class garnered substantial price momentum. Even in the face of a recession favoring Gold, McGlone posits that if the S&P 500 fails to decline during this economic downturn, Bitcoin may continue to outperform Gold in the medium term.
With the current U.S. inflation rate projected to be relatively low, the Federal Reserve’s decision to maintain flat interest rates signals a potential shift, hinting to investors that a crucial pivot might be underway. If the Federal Reserve opts for a rate cut, it could empower Bitcoin (BTC) as an inflow of cash into the economy may weaken the Dollar, consequently strengthening Bitcoin.
Regardless of the economic trajectory in 2024, there are indications that Bitcoin may sustain its impressive performance, boasting over a 151% growth in the Year-to-Date (YTD) period.
The Bitcoin ETF Catalyst
In the midst of the economic outlook for the coming year, the potential approval of a Bitcoin Exchange Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC) could tilt the scales in favor of Bitcoin’s superior performance.
Bloomberg analysts estimate the likelihood of this product’s approval at 90%, with the approval window anticipated in early January. As the market eagerly awaits the SEC’s decision, Bitcoin maintains its lead over gold as the premier asset in terms of growth rate.
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