Gold Poised to Outshine Bitcoin in 2024, Bloomberg Analyst Forecasts

  • Bloomberg’s senior commodity strategist, Mike McGlone, predicts gold to outperform Bitcoin in 2024.
  • Despite bullish trends in the Bitcoin market, macroeconomic factors may hinder its growth.
  • McGlone highlights potential misjudgments in market expectations regarding Federal Reserve policies.

Amidst changing economic landscapes, Bloomberg’s Mike McGlone anticipates gold to surpass Bitcoin in performance due to macroeconomic and Federal Reserve policy shifts in 2024.

Bitcoin’s 2024 Outlook: Challenges Ahead

Bitcoin, despite its recent positive developments such as the spot Bitcoin exchange-traded fund (ETF) approval and the anticipated Bitcoin halving, faces potential underperformance in 2024. Mike McGlone, Bloomberg’s senior commodity strategist, indicates that macroeconomic factors could inhibit Bitcoin from reaching new heights, particularly in the context of the stock market and risk-adjusted performance.

Federal Reserve’s Role in Bitcoin’s Future

McGlone points to prevalent market expectations for Federal Reserve interest rate cuts, which traditionally benefit risk-on assets like Bitcoin. However, he believes these expectations might be misplaced. “The Fed will not ease with the ease it has in the past because of inflation it created with easing too much,” McGlone stated in a Cointelegraph interview, suggesting a more conservative approach by the Fed in response to inflation concerns.

Recession Predictions and Impact on Bitcoin

The U.S. economy is expected to enter a recession this year, according to McGlone. This downturn is likely to negatively impact the stock market, and consequently, Bitcoin, which often acts as a leading indicator for risk assets. “When the stock market and beta goes down, Bitcoin goes down more,” McGlone observed, highlighting the cryptocurrency’s sensitivity to broader market trends.

Gold and Treasury Bonds: The Safe Havens of 2024?

Amidst these economic uncertainties, McGlone forecasts that gold and long Treasury bonds will emerge as the more resilient assets. Their expected stability and reliability contrast sharply with the projected volatility of Bitcoin and other risk-on assets, potentially making them more attractive to investors seeking safer havens during turbulent times.

Conclusion

As the financial landscape evolves, Bloomberg analyst Mike McGlone’s insights offer a nuanced perspective on the potential trajectories of Bitcoin and gold in 2024. With macroeconomic factors and Federal Reserve policies playing pivotal roles, investors might witness a shift in asset performance, marking gold and long Treasury bonds as potentially more favorable investments over Bitcoin in the coming year.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Michigan State Retirement Fund Invests $10 Million in Grayscale Ethereum Trust, Securing Major Stake

The Michigan State Retirement Fund has strategically positioned itself...

Grayscale Proposes Listing for Grayscale Digital Large Cap Fund (GDLC) as ETP with Bitcoin Dominating Holdings

On November 4, COINOTAG News reported that Grayscale has...

Fragmetric Completes Builder Round Financing to Enhance Solana Ecosystem Security and Liquidity

On November 4th, COINOTAG News reported that Fragmetric, a...

Vitalik Buterin Warns Against Exclusion of Russian Developers in Open Source Community

On November 4th, Vitalik Buterin, co-founder of Ethereum, took...

Bitcoin Volatility Soars Amid U.S. Election Impact on Crypto Markets

Bitcoin Volatility Surges as U.S. Election Heightens Stakes for...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img