Bloomberg Intelligence Senior Macro Strategist Mike McGlone has outlined a bullish scenario for gold in 2023 compared to Bitcoin (BTC), citing the potential for a US recession and stock market decline as key factors.
Gold May Rise More Than Bitcoin (BTC)
In a tweet on May 7, McGlone said that the move towards recession and momentum in the US could give gold an advantage over Bitcoin in 2023, especially if stock markets drop.
Trends, Recession Could Favor #Gold vs. #Bitcoin– Momentum and the tilt toward a US recession may give gold an advantage over Bitcoin in 2023, notably if the #StockMarket declines. The metal moving upward vs. declines for the crypto is the current trajectory on a 100-week basis pic.twitter.com/40XC2WmpPU
— Mike McGlone (@mikemcglone11) May 7, 2023
He added that the upward movement of gold against the dips for crypto is the current trend on a 100-week basis.
McGlone explained that Bitcoin's stay above the $30,000 resistance will be the first indication that the trend has changed for all cryptos, but that the ceiling seems to be strengthening as of May 2.
He also stated that Bitcoin has a higher correlation with the stock market and risk assets versus gold, which puts Bitcoin in a vulnerable position at the beginning of May.
McGlone said that the consensus that the US economy will have a soft landing and that the worst is over is similar across stocks and cryptos, with Bitcoin tending to be a higher beta and leading indicator.
He cited Bloomberg Economics' recession forecasts moving into July.
McGlone is a well-known analyst for Bloomberg Intelligence covering commodities and cryptocurrencies. It has been bullish on Bitcoin in the past, but it also sees gold as a valuable asset in times of economic uncertainty and inflation.
*Not investment advice.