Can Bitcoin Outperform Gold? Here’s what the produce guru says

With the ongoing financial uncertainty, investors are looking for products that can potentially provide protection. In this regard, gold and Bitcoin (BTC) are among the assets considered as viable options to provide the necessary security.

Along these lines, senior commodity strategist at Bloomberg Mike McGlone has suggested that gold is likely to show its dominance and continue to outperform Bitcoin in the coming months as the precious metal seeks to reach new highs, he said in an interview with Red Cloud TV on 12 May.

According to McGlone, the possible outperformance is highlighted by factors such as the Bitcoin-to-gold ratio. He noted that while gold may no longer be seen as a primary investment asset, it still has value as a risk asset as he maintained his bullish stance on Bitcoin.

“I’m still bullish on Bitcoin, but I think gold is going to continue to outperform Bitcoin. Remember, I look at things like the Bitcoin gold ratio; it’s right around 14 per ounce. I look at it in this world of rapidly advancing digitization technology, “You can’t really hold gold as an investment anymore without the digital gate in there, maybe a couple percent. I still think this is a risk factor,” he said.

Gold’s potential to accumulate in the future

McGlone also expressed uncertainty regarding the potential gold price rise in the future compared to Bitcoin. However, it is worth noting that with inflationary pressures, both gold and Bitcoin have been touted as possible safe haven assets.

Both asset classes have experienced significant growth in recent months, partly attributed to the ongoing banking crisis.

McGlone’s latest sentiment follows his earlier analysis which indicated that gold would likely outperform Bitcoin in a recession, especially if it involves a decline in the stock market. This is illustrated in a chart showing the 100-week moving averages for both assets.

Along those lines, as Finbold reported on May 9, gold-related exchange-traded funds (ETFs) rose 10% over the past two months, outpacing the benchmark SPX’s gains of 3% during that period.

As it stands, Bitcoin is trading at $26,810 with daily gains of around 1.5% as the premier cryptocurrency looks to reclaim the $30,000 spot. According to Kitco data, the precious metal is valued at $2,010 per ounce.

Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.