Bloomberg Analyst Mike McGlone Sees Bitcoin as the New Gold
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Bloomberg Analyst Mike McGlone Sees Bitcoin as the New Gold

February 4, 2021      Jafrin Ahmed

Bloomberg Intelligence’s senior commodity strategist Mike McGlone has said that investing in bitcoin is similar to investing in gold. In a report, senior commodity strategist Mike McGlone wrote that Bitcoin could hit $50,000 in the coming sessions. He praised Bitcoin for its ability to hold the $30,000-$40,000 range during its latest pullback move. That itself has served as a solid support base to attract institutional investors.

Funds Flowing from Gold to Crypto Markets

McGlone stressed many factors that showed funds flowing from gold to crypto markets. For instance, abnormally low interest rates, rising debt-to-GDP ratio, and global quantitative were the key reasons for the investors’ preferring the leading cryptocurrency. He adds:

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“About $30,000 is the threshold supported by a rising tide of institutional investors and global adoption as a store-of-value. Our graphic depicts the milestone of the 20-week moving average crossing above $20,000, which we view as an extreme downside level in the event of a risk-off swoon akin to 1Q20.”

McGlone emphasized that institutional investors started gaining exposure in the Bitcoin market via Grayscale Bitcoin Trust. The New York-based fund enabled investors to gain exposure to Bitcoin without the hassles of actually holding or storing cryptocurrencies.

Capital flowed into the Grayscale’s trust while it kept on accumulating more Bitcoin. Meanwhile, gold ETFs experienced withdrawals.

Bitcoin Overtakes Gold As Popular Investment Choice

Recent research by Japanese crypto exchange Bitflyer has highlighted the growing interest in Bitcoin as an investment option in American households. For instance, cryptocurrencies overtook gold as the fourth most popular investment vehicle, with real estate, 401k, and stocks in the top three spots.

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Institutional adoption for Bitcoin has increased further as its volatility drops to the levels of other traditional markets, such as gold and stocks. Meanwhile, McGlone has also indicated that the cryptocurrency’s volatility might even plunge below gold, making it a more attractive safe-haven asset by 2025.

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Jafrin Ahmed
Jafrin Ahmed

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.