Commodity Expert McGlone Details Risks for Bitcoin and Gold

• The Bitcoin/Gold ratio is currently facing significant resistance against the stock market, and two possible scenarios emerge for BTC.
• Commodity expert reveals that Bitcoin tends to rise in a positive scenario after zero-interest rate policies following a financial crisis.
• Moreover, Bloomberg analyst suggests that the Bitcoin spot ETF frenzy is the most significant signal preceding this sluggish forecast.

Bitcoin price weakens with the Fed’s interest rate policy moves: Commodity expert elaborates on views for Bitcoin and Gold.

McGlone Talks Bitcoin and Gold

Bitcoin (BTC) has lagged behind Gold since reaching its all-time high in 2021. The Bitcoin/Gold ratio is currently facing significant resistance against the stock market, and two possible scenarios emerge for BTC.

In particular, Bloomberg’s commodity expert Mike McGlone analyzes the current economic scenario, leaning towards a recession trend. McGlone shared his analysis on Twitter on January 23rd, emphasizing the risks of future penetration.

The commodity expert explains that Bitcoin tends to rise in a positive scenario after zero-interest rate policies following a financial crisis. However, as interest rates rise, the cryptocurrency started to lag behind Gold.

Now, the Bitcoin/Gold ratio is also lagging behind the stock market with a recent resistance confirmation and is likely in a downtrend. At least, Mike McGlone believes this will happen while issuing a stagnation warning for Bitcoin.

Moreover, the Bloomberg analyst suggests that the Bitcoin spot ETF frenzy is the most significant signal preceding this sluggish forecast. Interestingly, this view traces the comparison of inefficiency in Gold as an investment tool: “Gains and lack of interest, primarily due to increasing certainty, are the main reasons why gold is not widely held in portfolios, and this may also apply to Bitcoin. The frenzy of funds traded on crypto exchanges may be seen as a bell ringing at its peak when looking back.”

Bitcoin Price Status

Meanwhile, Bitcoin has lost nearly 18% since its peak of $48,965 on January 11th following the ETF approval. It is currently trading at $39,960, struggling to regain this resistance after losing a significant support line. The daily Relative Strength Index (RSI) weakness signals the struggle. However, Bitcoin could return to the range of December and regain strength in an upward trend.

In summary, McGlone expects the Bitcoin/Gold ratio to continue falling despite Bitcoin’s individual performance. Essentially, this means that Gold is a better investment than BTC until a trend change is observed. Investors need to be cautious and follow developments to make profitable decisions.