Bitcoin Losing Ground to Gold in ‘Uptober’
Chief commodity strategist of Bloomberg Intelligence, Mike McGlone, recently shared his insights on the performance of Bitcoin compared to gold and the similarities Bitcoin shares with copper. According to McGlone, Bitcoin is currently underperforming gold, despite the strength of the stock market.
Bitcoin Falling Behind Gold Despite S&P 500 Strength
McGlone’s analysis revealed that Bitcoin has been trailing behind gold, especially as the S&P 500 index, representing stocks, remains robust. In what is optimistically dubbed “Uptober” by crypto traders, Bitcoin’s value equivalent to gold has decreased to 24 ounces per Bitcoin, with gold reaching an all-time high of $2,713.88 per ounce. This ratio is lower than previous levels seen in March and 2021.
This trend suggests that Bitcoin might face challenges in the near future, especially as the stock market continues to perform well while Bitcoin’s value experiences a decline.
Insight from Max Keiser on Bitcoin’s Potential
In a related development, Bitcoin advisor to El Salvador’s president, Nayib Bukele, Max Keiser, predicts that Bitcoin could reach $220,000 soon, following gold’s historic peak. Keiser’s insight adds another layer to the discussion of Bitcoin’s performance in comparison to traditional safe-haven assets like gold.
Bitcoin and Copper: Shared Challenges
McGlone also highlighted the similarities between Bitcoin and copper, noting their struggles in the current stock market environment. The correlation between Bitcoin and the S&P 500 has reached a record high over a 60-day period, indicating that Bitcoin is currently perceived more as a risky asset than a safe-haven investment.
McGlone suggests that for Bitcoin to continue its growth trajectory, its volatility, akin to copper’s Beta, needs to increase significantly. This insight sheds light on the challenges facing Bitcoin in maintaining its value amidst market fluctuations.
