Bloomberg Intelligence economist Mike McGlone argues that Bitcoin must demonstrate its ability to act as an independent asset by staying above its 2021 high against gold.
Bitcoin's Position Against Gold
Currently, Bitcoin is valued at approximately 35 ounces of gold. If the price of Bitcoin falls below this level, it will indicate weakness.
Trends in Treasury Bonds Market
McGlone noted that U.S. Treasury bonds might emerge as the next big investment direction. In particular, yields in China are now trading towards 1.75%, making T-bonds a more attractive option.
Mike McGlone's Preferences
McGlone personally prefers gold over 'digital gold' at this moment. On August 14, Bitcoin briefly peaked at 36.9 ounces before paring some of its recent gains. Bitcoin is still down 0.41% against gold this year.
Bitcoin faces challenging tests, especially regarding its significance compared to gold and the growing allure of alternative assets like Treasury bonds.
