Bitcoin is a ‘top contender’ to outperform gold in the long run, says commodity guru
The cryptocurrency sector is still reeling from the massive sell-off triggered by the crash of crypto trading platform FTX, and the price of its largest asset by market capitalization – Bitcoin (BTC) continues to consolidate.
That said, Bloomberg Intelligence commodity strategist Mike McGlone has maintained his bullish view on Bitcoin and the industry as a whole, suggesting that Bitcoin could surpass gold in the future as its top competitor, as he explained on December 7.
Specifically, McGlone said that:
“The emerging technology/asset is a top contender to outperform the metal in the long term, as we see it, backing up in a too cold price zone.”
He also posted a chart demonstrating “the Bitcoin-to-gold ratio at roughly the 10x level, first reached in 2017,” adding that “in a world that is rapidly going digital, the benchmark crypto is a top competitor to old gold .”
Volatility is high but decreasing
McGlone acknowledged that, at about 4 times the metal, Bitcoin’s 260-day volatility was still relatively high, although much lower than in 2018, when it was about 10 times that of gold, despite the growing use faced a setback with the FTX collapse.
Furthermore, he emphasized that “the crypto may move to a high-beta version of gold and US Treasuries,” as well as concluded that “declining relative Bitcoin risk may only be a matter of time.”
Bitcoin price analysis
Meanwhile, the flagship decentralized finance (DeFi) token is currently trading hands at the price of $16,824.29, registering a very small daily gain of 0.07%, but an equally modest decline of 1.60% last week, which corresponding to the monthly loss of 14.79%. Meanwhile, gold is trading at $1,785.70 an ounce.
Earlier, Finbold reported that the ‘Bitcoin Rainbow’ indicator consolidated at its lowest point as the virgin asset aimed to regain the $17,000 level, while indicators suggested a bottom and a possible bull run in the future.
Meanwhile, Online Blockchain CEO Clem Chambers has warned that it could crash further to $8,000 as the FTX crisis remains unresolved and after Ethereum (ETH) was seen outperforming Bitcoin in the second half of 2022.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
