Mike McGlone, Bloomberg Intelligence’s senior macro strategist, predicts that Bitcoin (BTC) could underperform gold in the event of a US economic recession.
McGlone say that the precious metal would have an “advantage” over the flagship crypto-assets in the event that the US enters a recession.
According to McGlone, gold has been on an upward trajectory for the past two years, while Bitcoin has been on a downward trend.
“Trends, recession could favor gold over Bitcoin – momentum and US recession tendency could give gold an advantage over Bitcoin in 2023, especially if the stock market falls. The metal moving up versus down for the crypto is the current trajectory on a 100 week basis.
According to McGlone, Bitcoin could turn the tide if it appreciates and stays above the $30,000 key psychological level. However, the senior commodity strategist says Bitcoin is in a vulnerable position as it is more correlated with stocks and risk assets, which are under pressure.
“Bitcoin holding resistance above $30,000 would be a first indication of the tide turning for all cryptos, but the ceiling seems to be strengthening from May 2. It is the higher correlation with the stock market and risk assets versus gold that we see putting Bitcoin in a vulnerable position in early May.”
Bitcoin is trading at $27,931 at the time of writing, down just over 5% from its May high of around $29,724.
Don’t Miss Out – Subscribe to receive crypto email alerts delivered straight to your inbox
Check price action
follow us on Twitter, Facebook And Telegram
Surf the Daily Hodl mix
Image generated: Midway through the journey
