Bloomberg’s senior intelligence strategist Mike McGlone shared his views on how the competition between Bitcoin and Gold could evolve in 2024.
According to McGlone, if the U.S. enters a recession, considering the Bitcoin-gold exchange rate supported by the stock market, gold could gain an advantage over Bitcoin. However, if the S&P 500 index does not fall at the start of the recession, this could help Bitcoin outperform gold in the medium term.
With the inflation rate in the U.S. being at relatively low levels, the Federal Reserve kept interest rates steady. This could signal investors that a significant turning point is approaching. If the Fed makes an interest rate cut soon, it could strengthen Bitcoin.
Regardless of what the economic path in 2024 looks like, Bitcoin can maintain its impressive performance by showing more than 151% growth since the beginning of this year. The possibility of a Bitcoin Exchange Traded Fund (ETF) being approved by the SEC could alter the likelihood of the cryptocurrency showcasing its best performance.
While awaiting feedback from the SEC, Bitcoin continues to maintain its leadership as the superior asset in terms of growth rate compared to gold. According to Bloomberg analysts, the likelihood of this product being approved is currently seen as 90%, and the approval window is set for early January.