- Mike McGlone, a Bloomberg intelligence strategist, has recently analysed the relationship between Bitcoin, gold and S&P 500, and its potential implications for the crypto market.
- The analysis reflects on the impact of the SEC’s approval of spot Bitcoin ETFs, and the subsequent Bitcoin rally.
- McGlone notes that despite Bitcoin reaching all-time highs in Q1, it did not surpass its peaks against gold and S&P 500 set in 2021.
Bitcoin’s relationship with gold and S&P 500 could have significant implications for the crypto market, according to Bloomberg strategist Mike McGlone. This article delves into the recent trends and future predictions for Bitcoin and other risk assets.
Bitcoin, Gold and S&P 500: A Complex Relationship
Mike McGlone’s recent analysis highlights the slumping Bitcoin/gold cross, particularly in relation to the S&P 500. This trend has broader implications for risk assets, including cryptocurrencies. The analysis also reflects on the impact of the SEC’s approval of spot Bitcoin ETFs, which boosted inflows and strengthened Bitcoin’s status as a leading indicator. However, despite Bitcoin reaching all-time highs in Q1, it did not surpass its peaks against gold and S&P 500 set in 2021.
Implications for Risk Assets
Given that the inflows into the Bitcoin ETFs have relatively slowed, the hangover may have implications for risk assets, including cryptocurrencies. McGlone explained that Bitcoin was climbing against gold the last time the S&P 500 e-mini future crossed above its 50-week moving average in November, but now the Bitcoin/gold cross is falling. This slumping Bitcoin/gold cross, in contrast to the S&P 500’s performance, might indicate a potential reversal in risk assets that could have far-reaching consequences.
Bitcoin Price Action
At the time of writing, BTC was down 3.29% in the last 24 hours to $60,779 as the crypto market faced selling pressure. According to crypto analyst Michael Van De Poppe, Bitcoin currently trades at a crucial level; failure to hold at $60,000 may result in selling to $55,000 or $52,000, after which the rising trend continues. In late April, Bitcoin experienced its halving event, which has historically been a chopping sell-the-news event in the immediate term. The fourth halving was no exception, with the Bitcoin price falling shortly after and trading near $57,000.
Conclusion
The relationship between Bitcoin, gold and the S&P 500 is complex and can have significant implications for the crypto market. As Bitcoin’s inflows slow and its price fluctuates, investors and analysts will be watching closely to see how these trends develop. The resilience of Bitcoin’s macro uptrend, despite recent corrections, suggests that the crypto market remains robust.
