Mike McGlone, chief commodity strategist at Bloomberg Intelligence, predicted that Bitcoin could fall further against gold.
The renowned analyst pointed out that the Bitcoin-to-gold ratio has broken through an important uptrend line from the 2022 bottom.
McGlone said the shiny metal is likely to continue outperforming digital startups now that this major level of technical support has broken down.
Gold’s breakthrough year
Gold has had a great year so far, recently breaking above the $4,300 level for the first time. It is on track to achieve its best annual performance since 1979.
Traditional safe-haven assets are benefiting from significant demand from central banks and institutional investors amid concerns about falling fiat prices and geopolitical uncertainty.
Meanwhile, Bitcoin has recently suffered a severe sell-off due to US-China trade tensions and concerns about the US regional banking sector. Cryptocurrencies have so far not functioned as safe-haven assets and are mainly traded in parallel with stocks. However, Bitcoin has somehow underperformed even the flagship S&P 500 index.
From bull to bear
As reported by U.Today, McGlone previously predicted that Bitcoin could eventually lose 50% of its value versus gold.
The Bloomberg analyst, once a Bitcoin bull, has been actively advocating a gold bet against the major cryptocurrency over the past year.
But it’s worth noting that McGlone recently overstated his bearish stance by predicting that Bitcoin could plummet to $10,000 early this year. Even for the most delusional bears, price targets are extremely unrealistic.
