Gold could overtake Bitcoin (BTC) in 2024, a Bloomberg strategist said
Because the rivalry between Bitcoin (BTC) and gold is eternal. Mike McGlone, chief strategist at Bloomberg Intelligence, hinted. To what the trend between both assets might look like in 2024.
Bitcoin (BTC) vs. Gold in 2024 While Bitcoin's growth potential is high next year. The Bloomberg strategist does not rule out the possibility of gold making some interesting plays as well.
According to McGlone, if the United States eventually ends up in recession as expected... Gold may have the upper hand over Bitcoin. This is because the price cross of Bitcoin against gold appears to be gaining grounds from the stock market rally. This trend is bound to affect Bitcoin. Which the stock market generally views as a high-risk asset.
While Bitcoin (BTC) is usually correlated with some stock market indices. Most of this correlation has been decoupled in the past few months as the emerging asset class has gained impressive price traction. While a recession may put gold in a better position than Bitcoin. McGlone claims that the failure of the S&P 500 to decline when this recession begins may help Bitcoin continue to outperform gold in the medium term.
With the inflation rate in the United States falling to a relatively lower level according to the latest forecasts. The Federal Reserve kept interest rates steady, a move that signals to investors that a decisive pivot may be underway. If the Fed cuts interest rates soon. This may automatically enable Bitcoin (BTC) as the influx of cash into the economy may weaken the dollar and strengthen Bitcoin to a great extent.
Which path will the economy take in 2024? Bitcoin will likely be able to keep up with the amazing performance that saw it record growth of more than 151% in the year-to-date period.
Bitcoin ETF Catalyst Regardless of expectations of a recession next year. The potential approval of a Bitcoin exchange-traded fund (ETF) product by the US Securities and Exchange Commission (SEC) could shift the odds of better performance in the currency's favor.
The odds of this product being approved are low, according to Bloomberg analysts. It is now at 90%, and the approval window is scheduled to begin in early January. While investors and market participants await comments from the Securities and Exchange Commission. Bitcoin remains ahead of gold as the superior asset in terms of growth rate.
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