Bitcoin could be entering a difficult period against more stable (historically less risky) assets like gold, says Bloomberg expert Mike McGlone.
How far will Bitcoin fall?
Bitcoin recently peaked against gold in March 2024. This was of course due to the launch of the ETFs and the extremely strong period that Bitcoin went through at the time.
Now, Bitcoin has been in a difficult period for several months, where indecision is the main theme. For that reason, we see the Bitcoin/Gold ratio slowly decreasing.
Which also has to do with a very strong year for gold. Because Bitcoin has a great year, with a return of over 30%, but gold is also doing very well with over 20%.
McGlone thinks Bitcoin’s decline against gold could continue. He thinks the ratio will eventually drop from the current 23.0 to 15.0. That would give Bitcoin a price of around $31,500.
Why are we going down?
The reason why Mike McGlone expects Bitcoin to decline is that investors are a bit less willing to take risks, according to him. It seems that the US economy is cooling down a bit, which is increasing fears of a recession.
As a result, people are reducing risk within their portfolio and Bitcoin is logically one of the first assets to (partially) leave the field.
That won’t apply to the seasoned Bitcoiner, but for more traditional investors, that’s just how the game works. If the chance of economic misery/volatility increases, they’ll take risk (assets) off the table.
Based on that reasoning, McGlone expects Bitcoin to fall a bit from here against gold. At the time of writing, however, Bitcoin seems to be unconcerned by that.
The digital currency is currently (Friday evening) flirting with a price of 60,000 dollars.
Source: https://newsbit.nl/bloomberg-expert-verwacht-daling-bitcoin-versus-goud/
