Mike McGlone, senior macro strategist at Bloomberg Intelligence, shared his views on the performance of gold and Bitcoin (BTC) in a tweet on May 9.
McGlone suggested that the divergence that gold has outstripped Bitcoin may be reigniting with consequences for risk assets and deflation.
Is Bitcoin/Gold the Canary in the Coal Mine? The disparity of #gold outpacing #Bitcoin may be regaining fuel, with implications for risk assets and deflation. Up almost 10% on a year-over-year basis to May 12, the precious metal is a top-performing major asset pic.twitter.com/4tIQuypC0b
— Mike McGlone (@mikemcglone11) May 14, 2023
According to McGlone, gold was the top-performing major asset, up almost 10% year-on-year through May 8, while Bitcoin is down nearly 20% and the S&P 500 is almost flat. McGlone also showed a chart showing the link between the Bitcoin-gold ratio and the stock index.
McGlone said that the highs and lows between the S&P 500 and its 100-week moving average coincide with a similar pattern in the Bitcoin/gold ratio.
He added that after a drop of about 15% in October, the stock index has jumped to about 100-week averages, while Bitcoin/gold is close to 2017 highs.
Mike McGlone is senior macro strategist at Bloomberg Intelligence, a research division of Bloomberg LP. It specializes in commodities and crypto markets and provides analysis and insights on Bloomberg terminals and media platforms.
*Not investment advice.