- McGlone noted a sharp decline in ownership of gold and ETFs related to these assets recently. The latest development has been associated with the upcoming launch of spot BTC ETFs in the U.S.
- The expert shared his perception of why Bitcoin’s superiority over gold is high, emphasizing that the leading cryptocurrency will likely “replace the bullion” in the long term.
- Amid a global financial crisis, rather than remaining a safe haven for investors, gold experienced a significant drop, breaching the critical $1,880 per ounce support level.
Increasing expectations that spot Bitcoin ETFs will receive approval increases demand and makes Bitcoin superior to Gold and other assets.
Expectations for Bitcoin ETFs Stir the Pot
Mike McGlone, Bloomberg Intelligence’s Chief Commodity Strategist, used the X application to analyze how the anticipated approval of spot Bitcoin ETFs negatively impacted the price of gold.
McGlone pointed out that gold and ETFs related to these assets experienced a sharp decline in ownership recently. The latest development was associated with the upcoming launch of spot BTC ETFs in the U.S., and the strategist noted that Bitcoin’s appeal occasionally expanded in light of the Securities and Exchange Commission’s (SEC) approval for ETFs.
He shared his perception of why Bitcoin’s superiority over gold is high and emphasized that in the long term, the leading cryptocurrency will likely “replace the bullion.” Meanwhile, he noted that Bloomberg Intelligence maintains a positive outlook for gold’s rise despite the recession in the U.S.
In the meantime, the market expert did not shy away from acknowledging that Bitcoin’s different strength compared to stocks and bonds in recent times showed an important level of maturity and diversification.
Bitcoin Surpasses Gold
Bitcoin and gold are often seen as two closely related assets that tend to move in opposite directions in the market. Although the correlation between BTC and gold has decreased, indicating that Bitcoin is still far from becoming a digital store of value similar to gold, it has not affected the recent adoption rate of the crypto asset.
Earlier this month, while gold recorded new high price levels amid a two-month decline, Bitcoin continued its ascent. Instead of remaining a safe haven for investors amid a global financial crisis, gold experienced a drop significant enough to breach the critical $1,880 per ounce support level.
With expectations growing for the approval of spot BTC ETFs, industry experts like Mike Novogratz, Anthony Scaramucci, and Robert Kiyosaki believe that Bitcoin will undergo a significant rally. Robert Kiyosaki sees a likelihood of BTC reaching $135,000 when SEC approval is granted.
