Bitcoin Performance Compared to Gold: Disappointing Results
According to commodities expert Mike McGlone, Bitcoin has not performed well in terms of price compared to gold since its peak in 2021. The Bitcoin/gold ratio has dropped by 40% compared to its peak in 2021. Both Bitcoin and gold are considered safe haven assets, but their price growth varies over time. McGlone suggests that the recent negative performance of Bitcoin compared to gold could indicate a potential recovery for the cryptocurrency. However, this recovery may be linked to a reduction in fears of a US recession. Gold has been favored in recent years due to a restrictive US monetary policy. With the introduction of Bitcoin spot ETFs, the cryptocurrency may gain more attention and compete with gold.
BTC Price Analysis: Potential Bullish Continuation
Despite a decline during the approval of spot ETFs, Bitcoin shows potential for a bullish continuation. The cryptocurrency is currently priced at $43,160 with a market capitalization of approximately $846 billion, which is about 16.3 times lower than that of gold. Over the past year, BTC has grown by 84%, while gold has only grown by 5.84%. The $50,000 level is seen as an important target for Bitcoin’s future price action, with bulls aiming for it and bears attempting to push BTC below $40,000. A return to $50,000 would increase the chances of reaching new highs, with $100,000 as the next target. However, there may be a significant correction ahead if Bitcoin follows a similar pattern as in previous cycles.
Hot Take: Bitcoin’s Performance Compared to Gold
Bitcoin’s disappointing performance compared to gold since its peak in 2021 raises questions about its ability to outperform traditional safe haven assets. While Bitcoin and gold both offer shelter to investors, the price growth of these assets varies over time. The recent negative performance of Bitcoin compared to gold suggests a potential recovery for the cryptocurrency, but this may be dependent on a reduction in fears of a US recession. The introduction of Bitcoin spot ETFs could also boost its price and allow it to compete with gold. However, a significant correction may be on the horizon if Bitcoin follows a similar pattern as in previous cycles. Overall, the future performance of Bitcoin relative to gold remains uncertain.
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