A number of indications are that Bitcoin (BTC) is pushing gold back as the leading security. This could pave the way for the digital currency’s adoption on a wider scale, according to Mike McGlone, chief trade analyst at Bloomberg.
McGlone tweeted on Monday that the battle between safe havens has begun in Bitcoin’s favor, based on technical and fundamental indicators. It is to explain:
“Gold will always have a place in jewelry and coin collections, but most indications point to the acceleration of Bitcoin development, which is replacing the metal as a store of value in investor portfolios.”
The chart accompanying the tweet shows Bitcoin’s strong performance against gold since the mid-2020s, while the total known ETF holdings in gold have declined. In other words, Bitcoin appears to be gaining traction among institutional investors at the expense of gold. The chart also highlights the sharp decline in Bitcoin’s volatility against gold.
McGlone has long argued that Bitcoin will eventually become the preferred haven for investors as the history of digital gold continues to gain momentum. In early February, a Bloomberg strategist predicted that Bitcoin would quickly reach $ 50,000 as investors move money from gold to digital. The major cryptocurrency has reached the $ 50,000 level in less than two weeks.
In November 2020, McGlone also predicted that Bitcoin would reach $ 170,000 in value over the next two years before turning into gold.
So far this year, the port battle between gold and Bitcoin has strongly supported Bitcoin. As of Monday, the price of one bitcoin was equal to 30.3 grams of gold. According to MarketWatch data, that number reached 32.1 in February.
The spot price for BTC is currently trading above $ 51,100, up 1.3% on the day. Meanwhile, gold fell 0.9% to $ 1,683 an ounce on the Comex division of the New York Mercantile Exchange.