Mike McGlone noted that on December 4, the price of gold rose by as much as 3% to reach a record high of $2,135 per ounce. This was fueled by the fall of the US dollar and investors’ expectations that the US Federal Reserve (Fed) would cut interest rates. Gold then fell 5.1% to $2,025, while Bitcoin rose 6.2% to top $42,000. Bitcoin later fell just 1% and is now trading at $41,900.
“Gold became history overnight. It reached a new all-time high and digital gold (Bitcoin) continues to show confidence and strength despite stock market weakness,” McGlone said.
The analyst warned that Bitcoin’s volatility could prevent it from trading reliably like gold during a period of “risk aversion.” For Bitcoin to compete with gold as an alternative asset, McGlone said it must establish key reliability metrics. We are talking about the negative correlation of Bitcoin with the stock market and the achievement of high deficits during periods of growth in the money supply. McGlone concluded that Bitcoin is doing well right now.
In October, a Bloomberg analyst suggested that the growth of the first cryptocurrency may turn out to be a fake pump, organized by large players to cover their short positions. Six months ago, McGlone said that Bitcoin could become significantly cheaper in the near future, but his forecast did not come true.
Source: Bits
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