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.
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.