Bitcoin's Struggles Compared to Gold

Chief commodity strategist of Bloomberg Intelligence, Mike McGlone, shared insights on Bitcoin's performance compared to gold and copper on X (formerly Twitter).

Bitcoin Underperforming Gold

According to McGlone,
Bitcoin is currently lagging behind gold, even as the S&P 500 remains strong. Notably, Bitcoin's valuation in October saw 1 BTC equating to 24 ounces of gold, a significant decline from March's 34 ounces and 2021's 37 ounces.

This trend may indicate potential headwinds for Bitcoin in the coming months, as BTC experiences a downturn despite a robust stock market.

Max Keiser's Optimism

In a recent report, Bitcoin advisor to El Salvador's president, Max Keiser, expressed confidence that Bitcoin could soon reach $220,000, driven by gold's historic peak.

Similarities with Copper

McGlone also noted that Bitcoin shares similar challenges with copper, as both are struggling amid a rising stock market. The correlation of Bitcoin with the S&P 500 has hit a record high over 60 days, indicating Bitcoin's behavior resembles that of risky stocks rather than a safe haven.

He emphasized that for Bitcoin to continue its price growth, its volatility (Beta) needs to increase significantly.

Originally published on U.Today