Bitcoin (BTC) has lagged behind Gold since the leading cryptocurrency’s all-time high in 2021.
The Bitcoin/Gold ratio now faces important resistance against the stock market and two possible outcomes surge for BTC.
In particular, Bloomberg’s commodity expert Mike McGlone analyzes the current economic scenario and leans toward a recession. McGlone posted his analysis on X (formerly Twitter) on January 23, warning of trickle-down risks moving forward.
The commodity expert explained Bitcoin surged in a favorable scenario of zero-interest rate policies (ZIRP) after a financial crisis. However, the cryptocurrency started to lag behind Gold when interest rates rose.
Now, the Bitcoin/Gold ratio also lags behind the stock market with a recent resistance validation, possibly trending downwards. At least, this is what Mike McGlone believes will happen while sounding the alarm of a recession for Bitcoin.
It is worth mentioning that BTC’s daily Relative Strength Index (RSI) is signaling weakness. Nevertheless, Bitcoin could return to December’s range and regain its strength in an uptrend.
In summary, McGlone expects the Bitcoin/Gold ratio to continue falling despite Bitcoin’s individual performance. Essentially, this suggests Gold is a better investment than BTC for 2024 until the observed trend shifts.
Investors must act with caution and follow further developments to make profitable decisions.