For a long time, Bitcoin was heralded as the digital equivalent of gold. However, recent statistics indicate that this analogy might be losing its strength. Bloomberg analyst Mike McGlone points out that the ratio between Bitcoin and gold is shifting rapidly, which he believes could signal an impending major transformation.
Data often tells a more compelling story than words alone. The once-soaring Bitcoin/Gold ratio that surpassed 50 has now dwindled to around 30. As volatility returns to stock markets, McGlone notes that riskier assets generally struggle in such conditions while gold steadily regains its position.
Bitcoin’s value has been erratic recently; it attempted to surge past $124,000 but quickly fell back below $111,000 by the time U.S. trading commenced.
Conversely, gold is performing exceptionally well, challenging the notion that digital scarcity trumps physical scarcity. In just one day, futures surged by $130 per ounce to reach $4,130 — setting a new record with a 3.3% increase and boosting the metal’s market capitalization by nearly one trillion dollars.
Additional Insights
The largest bullion ETF, GLD, saw trades amounting to $12.5 billion — marking its second-highest trading volume ever and surpassing most of the Magnificent 7 stocks in turnover.
Gold’s Relative Strength Index (RSI) hit an unprecedented high of 91.8 this month –;a testament to its strength with only four months of losses since March 2024.
While McGlone has faced criticism for his bearish outlook previously ,; this time – he appears vindicated as evidence mounts against Bitcoin when compared directly with Gold— a clear indication favoring traditional precious metals over their digital counterparts;