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Fundamental Analysis

Bitcoin’s Outperformance of Gold May Indicate Supercycle, Says Bloomberg Strategist

Bitcoin’s Outperformance of Gold May Indicate Supercycle, Says Bloomberg Strategist

Bloomberg's senior macro strategist, Mike McGlone, believes that Bitcoin's recent outperformance of gold could indicate the start of a new supercycle for the leading cryptocurrency.

In a tweet to his 55,000 Twitter followers, McGlone points out that BTC has beaten gold, the top-performing old-guard commodity in 2023, by almost ten times. He attributes this to the digital assets’ low and rising adoption rate and diminishing supply.

Bitcoin’s advantages over gold

One of Bitcoin’s key advantages over gold is its potential for long-term growth. While gold has been a safe-haven asset for centuries, Bitcoin has only existed for a little over a decade.

As more people become aware of BTC’s potential as a store of value, its adoption rate is likely to continue to rise. In contrast, the supply of gold is finite, and a limited amount of the precious metal can be mined.


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Bitcoin’s transition from risk-on to defensive investment

McGlone believes that Bitcoin may be in a transitionary period, shifting from being a risk-on asset to a more defensive investment against economic instability and banking crises. He compares Bitcoin to the KBW banking index, which tracks publicly traded banks and thrifts in the United States.

According to McGlone, BTC’s relative strength versus most assets could indicate its inflection towards global digital collateral and its potential to trade more like gold and US Treasury bonds.

Global economy’s Shift Towards Bitcoin, Gold, and Bonds

McGlone also suggests that the global economy is shifting towards Bitcoin, gold, and bonds due to the current recession. He believes investors will be looking to buy dips in these assets as the world tilts toward a recession.

Furthermore, he predicts that the global economy will not go through the same periods of heavy dollar liquidity as it did in the past, forcing investors to take a more keen stance on Bitcoin, gold, and bonds.

In conclusion, Bitcoin’s recent outperformance of gold and its potential for long-term growth and defensive investment make it an attractive asset for investors in these uncertain times. As the global economy shifts towards a recession, Bitcoin, gold, and bonds may become even more valuable as investors seek to mitigate risk and find safe-haven assets.

Author
Andrey Kunev

Reporter at CoinsPress

Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.

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