Bloomberg Intelligence strategist Mike McGlone revealed his thoughts on Bitcoin‘s potential to surpass gold in 2024, even in the event that the anticipated U.S. recession materializes.
McGlone speculates in a tweet that in the event of a recession, gold would momentarily outperform Bitcoin. This is due to the fact that Bitcoin is frequently seen as a “risk-on” asset that has a strong relationship to stocks. He does, however, believe that Bitcoin’s strong upward momentum will overcome any declines brought on by the recession.
McGlone points out that despite the S&P 500’s difficulties in 2022, Bitcoin has held up well thus far. And since it is anticipated that U.S. inflation would stay relatively low in the upcoming year, the Federal Reserve may start lowering interest rates in 2023. Rate reductions may cause the US currency to decline even further, which would help Bitcoin.
Furthermore, there is a strong likelihood that an exchange-traded fund (ETF) based on Bitcoin will be approved by the SEC by early 2023. Analysts predict a 90% chance of acceptance. The introduction of a Bitcoin ETF would significantly increase acceptance and legitimacy among the general public.
In light of the aforementioned macroeconomic benefits and Bitcoin’s remarkable 151% annual increase thus far, McGlone maintains that the cryptocurrency’s long-term growth trajectory is quite promising. Therefore, even while gold shouldn’t be written off entirely, Bitcoin appears to have a better future than ever as it continues to develop into a digital store of value.
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