Did you stay calm during the bear market and continue investing? So you did well. Bitcoin reached $42,400 (€39,000) last night and gold even reached an all-time high (in dollars). But what is the best investment?
Gold reaches ATH, but Bitcoin is stronger
Mike McGlone, strategist at Bloomberg Intelligence, says Bitcoin has proven to be much stronger than gold. Those are big words considering gold rose to a record high of $2,100 yesterday.
Gold rose as much as 3% to a record $2,135 an ounce, driven by the decline in the US dollar. But the market also assumed that the US Federal Reserve would cut interest rates next year.
After reaching an all-time high, the price fell 5.1% to $2,025. Meanwhile, the price of Bitcoin has risen 6.2% and is now around $42,000.
“Gold was an overnight story reaching new highs, and digital gold continues to show strength,” McGlone said in an interview today.
Bitcoin must become the opposite of stocks
McGlone went on to say that he was “very impressed” with Bitcoin’s strength despite the stock market’s weakness. However, McGlone warned that Bitcoin’s volatility could mean that Bitcoin is not as reliable as gold in times of risk.
“I’m just not prepared to say that this high-volatility asset is trading more like a high-risk, low-volatility asset like gold,” McGlone said.
According to McGlone, Bitcoin must demonstrate a number of key reliability characteristics to truly compete with gold as an alternative asset. The most important thing is to have a negative correlation with the stock market, but also to benefit from the central banks’ money printing.
“So far, Bitcoin is doing very well,” says McGlone.
Source: BTC Direct
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.