Bitcoin (BTC) vs Gold in 2024
When it comes to the rivalry between Bitcoin (BTC) and Gold, Bloomberg Intelligence Strategist, Mike McGlone, has offered some insights into what we might expect from both assets in 2024.
According to McGlone, if the US enters a recession as predicted, Gold may have an advantage over Bitcoin. This is because the Bitcoin-to-gold cross rate is influenced by a rising stock market, making Bitcoin a risk-on asset. However, if the S&P 500 doesn’t drop during this recession, Bitcoin could continue to outperform Gold in the medium term.
#Gold May Have an Upper Hand vs. #Bitcoin in 2024 If US Recession – The Bitcoin-to-gold cross rate appears to be gaining underpinnings from a rising stock market, with implications for a typical risk-asset drawdown in a recession. pic.twitter.com/BxNN51aZtb
— Mike McGlone (@mikemcglone11) December 17, 2023
With the US inflation rate projected to remain relatively low and the Federal Reserve keeping interest rates unchanged, investors are anticipating a potential shift. If the Fed implements a rate cut soon, it could benefit Bitcoin as cash inflows weaken the Dollar and strengthen Bitcoin.
Regardless of the economic path in 2024, Bitcoin is expected to maintain its impressive performance, with a Year-to-Date (YTD) growth of over 151%.
The Bitcoin ETF Catalyst
A crucial factor that could sway the performance odds in favor of Bitcoin is the potential approval of a Bitcoin Exchange Traded Fund (ETF) by the SEC. Bloomberg analysts have pegged the chances of approval at 90%, with a decision expected in early January. While awaiting the SEC’s feedback, Bitcoin remains ahead of gold in terms of growth rate.
Hot Take: Bitcoin vs Gold in 2024
In 2024, the battle between Bitcoin and Gold is set to continue. While Gold may have an upper hand if a recession hits the US, Bitcoin’s performance will depend on factors like stock market trends and potential rate cuts. With its impressive growth rate and the possibility of a Bitcoin ETF approval, Bitcoin remains a top contender against Gold in terms of investment opportunities.
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