Mike McGlone, senior macro strategist at Bloomberg Intelligence, shared his views on Bitcoin and gold in a statement on Twitter.
According to McGlone, the strength needed for gold to stay above $2,000 an ounce may have come from the Bitcoin price falling below $30,000.
According to McGlone, crypto lovers who call gold "boomer rocks" may be wrong about the future of gold as the US plunges into recession. He argues that gold could be at a crossroads against Bitcoin, with potential performance similar to the precious metal's 2011 peak of around $1,900.
#Bitcoin Holding $30,000 Ceiling May Help Fuel #Gold Above $2,000 – Crypto enthusiasts who refer to gold as "boomer rocks" may fall by the wayside vs. the metal as the US leans into a recession. Optimism that there will be a soft landing and that the worst is over… pic.twitter.com/Kn3LiEzSlG
— Mike McGlone (@mikemcglone11) May 4, 2023
McGlone states that the fuel needed for gold to hold above $2,000 per ounce could come from Bitcoin's pullback from $30,000.
That's the current trajectory through May 2, and it may be just getting started, McGlone said. McGlone adds that this is a matter of resilience, and that the leading indicator for risk assets, which are traded 24/7, could indicate that a recession in the US is not creating a bullish trend for Bitcoin, at least initially.
McGlone also points out that Bitcoin is facing its first recession that Bloomberg expects to begin in July. He argues that if the stock market and commodities fall due to the Fed's tightening policy, cryptocurrencies will likely suffer as well.
He adds that it was the financial crisis that brought gold above $1,000 and caused the birth of Bitcoin.
*Not investment advice.