Strategist, Mike McGlone from Bloomberg Intelligence hea disclosed his beliefs that Bitcoin is poised to continue outperforming gold in 2024, even if the predicted U.S. recession comes to fruition.
In a tweet, McGlone suggests gold may temporarily gain an advantage over Bitcoin if the stock market declines during a recession. This is because Bitcoin is often viewed as a “risk-on” asset with high correlation to equities.
However, he expects Bitcoin’s strong upward momentum to overcome any recession-related pullbacks.
McGlone notes that so far, Bitcoin has stayed resilient despite the S&P 500’s struggles in 2022. And with U.S. inflation projected to remain relatively tame next year, the Federal Reserve may begin cutting interest rates in 2023. Rate cuts could further weaken the U.S. dollar to Bitcoin’s benefit.
Additionally, hopes are high that the SEC may finally approve a Bitcoin exchange-traded fund (ETF) in early 2023. Analysts estimate the odds of approval at 90%. The launch of a Bitcoin ETF would provide a major boost in mainstream adoption and validation.
Given these macroeconomic tailwinds plus Bitcoin’s already impressive 151% year-to-date growth, McGlone believes its long-term growth trajectory remains highly compelling.
So while gold shouldn’t be counted out completely, Bitcoin’s future looks brighter than ever as it continues maturing into a digital store of value.
Also Read: Bloomberg Analyst: 90% Odds For Bitcoin ETF Approval by SEC
