Bloomberg Intelligence’s senior macro strategist Mike McGlone is forecasting that Bitcoin (BTC) could fare worse than gold in case of an economic recession in the US.
McGlone says that the precious metal would have an “advantage” over the flagship crypto asset in the event of the US falling into a recession.
According to McGlone, gold has demonstrated an upward trajectory over the past two years while Bitcoin trended downwards.
“Trends, recession could favor gold vs. Bitcoin – momentum and the tilt toward a US recession may give gold an advantage over Bitcoin in 2023, notably if the stock market declines. The metal moving upward vs. declines for the crypto is the current trajectory on a 100-week basis.”
According to McGlone, Bitcoin could turn the tide if it appreciates and stays above the $30,000 key psychological level. The senior commodities strategist, however, says that Bitcoin is in a vulnerable position as it’s more highly correlated to equities and risk assets, which are under pressure.
“Bitcoin sustaining above $30,000 resistance would be an initial indication of the tide turning for all cryptos, but the ceiling appears to be strengthening as of May 2nd. It’s the higher correlation to the stock market and risk assets vs. gold that we see placing Bitcoin in a vulnerable position at the start of May.”
Bitcoin is trading at $27,931 at time of writing, down by a little over 5% since the May high of around $29,724.
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