Mike McGlone, a leading commodity strategist at Bloomberg Intelligence, has forecasted that Bitcoin may continue to decline when compared to gold.
The well-known analyst highlighted that the Bitcoin-to-gold ratio has broken through a significant upward trend line established since the 2022 low point.
With this crucial technical support now breached, McGlone suggests that gold is poised to keep outperforming its digital counterpart.
A Stellar Year for Gold
This year has been remarkable for gold, as it recently exceeded the $4,300 mark for the first time. It appears set to achieve its most impressive annual performance since 1979.
The traditional safe-haven asset is experiencing heightened demand from central banks and institutional investors due to worries about currency devaluation and geopolitical instability.
In contrast, Bitcoin recently suffered a significant downturn because of trade tensions between the US and China and concerns regarding regional banking in America. The cryptocurrency hasn’t succeeded in establishing itself as a reliable safe haven asset; instead, it often moves in sync with stock markets. Surprisingly, Bitcoin’s performance even lagged behind that of the prominent S&P 500 index.
From Optimism to Pessimism
According to U.Today reports, McGlone had earlier predicted that Bitcoin might lose half of its value relative to gold.
The Bloomberg expert once bullish on Bitcoin has become an ardent supporter of investing in gold over this leading digital currency during recent times.
However, it’s important to remember that earlier this year McGlone took his bearish stance too far by predicting an unrealistic drop in Bitcoin’s price down towards $10,000.