Mike McGlone, senior macroeconomic strategist at Bloomberg Intelligence, expressed the opinion that bitcoin is currently demonstrating much greater stability compared to gold, whose prices have reached a historic high.
On December 4, the price of gold rose by 3%, reaching a record $2,135 per ounce. This was facilitated by the decline in the US dollar and investors' expectations regarding a reduction in interest rates by the US Federal Reserve (FRS). Then the price of gold fell by 5.1% to the level of $2,025, while bitcoin rose by 6.2%, breaking the $42,000 mark. Subsequently, bitcoin fell only slightly by 1% and is currently trading at $41,900.
Mike McGlone noted that "gold made history overnight, reaching a new record high, while digital gold, i.e. bitcoin, continues to show confidence and strength despite the instability of the stock market."
The analyst warned that bitcoin's high volatility could prevent it from becoming as reliable an asset as gold during periods of "risk aversion." He believes that in order for bitcoin to compete with gold as an alternative asset, it needs to demonstrate key reliability indicators such as negative correlation with the stock market and achieving high deficits during periods of increasing money supply. However, McGlone concluded that bitcoin looks promising at the moment.
In October of this year, a Bloomberg analyst suggested that the growth of bitcoin could be a temporary "pump" organized by major players to close their short positions. Six months ago, McGlone also predicted that bitcoin could become significantly cheaper in the near future, but these forecasts turned out to be erroneous.
