🌟 Bitcoin Hits $100K, But Gold Shines
Bitcoin recently achieved the $100,000 milestone, igniting market optimism. While many eye further gains, Bloomberg analyst Mike McGlone offers a more cautious perspective, highlighting challenges for Bitcoin and opportunities for gold.
⚖️ Bitcoin vs. Gold ETFs
The launch of spot Bitcoin ETFs in January 2024 has pushed global Bitcoin ETF holdings to $125 billion, nearing gold’s $225 billion. However, McGlone notes Bitcoin ETFs bring higher risks due to their threefold volatility compared to gold. As such, investors may favor gold for stability and similar reward potential.
📉 Bitcoin's Volatility and Correlation
McGlone also points out Bitcoin’s price is closely tied to U.S. equities, which he suggests are overstretched. In contrast, gold remains less correlated, making it a safer bet in a potential market downturn.
💡 Lessons from Trump’s First Term
Drawing parallels to Donald Trump’s earlier presidency, McGlone highlights gold’s 52% rise during that period, outperforming Bitcoin’s correlation-driven moves. With Trump set to return, investors may seek gold as a traditional store of value amidst uncertainty.
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