Mike McGroen, chief commodity strategist at Bloomberg Intelligence, believes that Bitcoin has yet to prove that it can act as an independent asset, not just the “last massive trade” being chased by speculators.
To prove that, cryptocurrencies need to surpass 2021 against gold.
A new big company?
Currently, Bitcoin is rated at around 35 ounces of gold. When Bitcoin falls below that level, more weaknesses are shown.
In fact, the US Treasury Department (T Bond) could emerge as the next major trade. He adds that China's yields are currently trading at 1.75%. Therefore, T-bond may be a more attractive option.
As Reported by U.TodayMcGlone previously predicted that Bitcoin could collapse to $10,000.
McGlone comes with gold
McGlone points out that he personally prefers gold to “digital gold” for now.
On August 14, Bitcoin peaked temporarily at 36.9 ounces on August 14, cutting some of its recent profits.
In mid-April, the Bitcoin/Xaut pair collapsed to just 24.7 ounces.
Bitcoin has also dropped by 0.41% against gold this year. This can be very embarrassing for major cryptocurrency owners.
As Reported by U.TodayFidelity's Jurrien Timmer previously predicted that Bitcoin could surpass gold later this year. However, this prediction has not yet been realized as Digital Gold is lagging behind its “safe shelter” competitors.
