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Mike McGlone, senior commodity strategist at Bloomberg, published a tweet about Bitcoin nearing the $70,000 level and what may happen to the gold price, while it is happening.
McGlone has named two main reasons why Bitcoin can soar to $70,000 and gold price may dump.
What may happen to gold as Bitcoin heads for $70,000: McGlone
Bloomberg’s expert mentioned the recent Bitcoin price surge and that BTC is likely targeting the $70,000 now. In the meantime, he stated, gold, which is considered a BTC rival in the world of physical assets by many parameters, and mainly as a safe haven asset, the current monstrous inflows into spot Bitcoin ETFs may “leave the metal looking naked in portfolios.”
What of #Gold With #Bitcoin Nearing $70,000? Crypto Money Pull - The juxtaposition of #China rapidly accumulating gold and record inflows into US Bitcoin #ETFs may leave the metal looking naked in portfolios if not paired with some of the crypto. Gold ETF outflows and declining… pic.twitter.com/Hk0pt6XeYO
— Mike McGlone (@mikemcglone11) March 1, 2024
Despite the fact that China is quickly acquiring gold, McGlone stressed, a tremendous wave of interest is now aimed at Bitcoin-based exchange-traded funds which were recently approved by the Securities and Exchange Commission after almost a decade of lobbying. Many investors are taking their funds out of gold ETFs and are sending them into Bitcoin funds. Besides, the expert mentioned a declining gold futures interest.
Bitcoiner Michael Saylor dismisses gold
As reported by U.Today recently, vocal Bitcoin evangelist and head of MicroStrategy Michael Saylor published a tweet in which he showed that since August 2020, when the business intelligence giant began to regularly stock up on BTC, the flagship cryptocurrency has skyrocketed by 333% - and that was before the current surge to the $64,000 level. Earlier this week, MicroStrategy made another massive Bitcoin purchase, grabbing approximately 3,000 BTC for $155 million.
As for gold, Saylor tweeted that over the past three and a half years, it has declined by 1%. As of February 29, gold traded at $2,048 per ounce.
Earlier this week, Michael Saylor made a call on the global BTC community, urging them not to sell their Bitcoin as the cryptocurrency soared above $61,000 and then headed on to the $64,000 level.
At the time of this writing, Bitcoin is changing hands at $62,424. With the fourth Bitcoin halvening event less than two months away, many experts from the cryptocurrency space are making bullish predictions. Among them is Adam Back, founder of BlockStream, who expects BTC to hit $100,000 before the halving.