With the rivalry between Bitcoin (BTC) and Gold an eternal one, top Bloomberg Intelligence Strategist, Mike McGlone has hinted what the trend between both assets might be like in 2024.
Bitcoin (BTC) vs Gold in 2024
While the growth potential of Bitcoin is high in the coming year, the Bloomberg Strategist is not ruling out the potential of Gold to pull some intriguing performances as well.
According to McGlone, should the US eventually end up in recession as is being forecasted, then Gold may have an upper hand over Bitcoin. This is because the Bitcoin-to-gold cross rate appears to be gaining underpinnings from a rising stock market. This trend is bound to impact Bitcoin, generally perceived by the stock market as a risk-on asset.
While Bitcoin (BTC) typically correlates with some stock market indices, most of this correlation has been decoupled in the past few months as the nascent asset class gained impressive price traction. While a recession may place Gold in a vantage position over Bitcoin, McGlone claims that the failure of the S&P 500 to drop when this recession sets in may help Bitcoin continue outperforming Gold in the mid-term.
With the United States inflation rate at a relatively lower level per latest projections, the Federal Reserve has kept interest rates flat, a move that signals to investors that a crucial pivot may be underway. Should the Feds implement rate cut soon, it might automatically empower Bitcoin (BTC) as the inflow of cash into the economy might weaken the Dollar and strengthen Bitcoin considerably.
Either path the economy trails in 2024, chances are Bitcoin may keep up with the impressive performance that has seen it record a more than 151% growth in the Year-to-Date (YTD) period.
The Bitcoin ETF Catalyst
Irrespective of the recession outlook for next year, a potential approval of the Bitcoin Exchange Traded Fund (ETF) product by the United States Securities and Exchange Commission (SEC) can shift the odds of the best performance in the coin’s favor.
The odds of approval of this product, according to Bloomberg analysts, are now pegged at 90% and the approval window is set for early January. While investors and market participants await the SEC’s feedback, Bitcoin remains in the lead over gold as the superior asset in terms of growth rate.
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