Mike McGlone, chief commodity strategist for Bloomberg Intelligence, has predicted that Bitcoin might further slump against gold.
The famed analyst has noted that the Bitcoin-to-gold ratio has breached the critical uptrend line from the 2022 trough.
Now that this major technical support level has failed, the lustrous metal is likely to continue outperforming the digital upstart, according to McGlone.
Gold’s breakthrough year
Gold has so far had a banner year, recently surpassing the $4,300 level for the first time. It is on track to score its best annual performance since 1979.
The traditional safe-haven asset is benefiting from significant demand from central banks and institutional investors amid concerns about fiat currency debasement and geopolitical uncertainty.
Meanwhile, Bitcoin recently endured a severe crash due to trade tensions between the US and China, as well as concerns about the regional banking sector in the US. The cryptocurrency has so far failed to perform as a safe haven asset, trading mostly in tandem with equities. However, Bitcoin has somehow managed to underperform even the flagship S&P 500 index.
From bull to bear
As reported by U.Today, McGlone previously predicted that Bitcoin could end up losing 50% of its value against gold.
The Bloomberg analyst, who used to be a Bitcoin bull, has been aggressively advocating for betting on gold against the leading cryptocurrency over the past year or so.
However, it is worth noting that McGlone recently went overboard with his bearishness earlier this year, predicting that Bitcoin might plunge to $10,000. The price target is extremely unrealistic, even for the most delusional bears.
