Bloomberg analyst: Bitcoin is accelerating to replace gold

Bitcoin is replacing gold at an accelerating pace

Mike McGlone, a top commodity strategist at Bloomberg Intelligence, shared his analysis on Twitter, noting that Bitcoin is accelerating to replace gold as a store of value in investors' portfolios.
While precious metals will always have a place in “jewelry and coin collecting,” Bitcoin appears to be “pushing out the old store of value,” replacing the metal as an inflation hedge.

According to McGlone, starting in 2017, investors generally chose Bitcoin over gold as a store of value, and in addition to the asset's faster appreciation relative to gold, McGlone is bullish on Bitcoin's price. McGlone accurately predicted that Bitcoin would soar to the $50,000 mark and recently made a new prediction. He said that by 2025, the price of Bitcoin will continue to rise, eventually reaching the $100,000 milestone, which is the target expected by many other Bitcoin bulls. His prediction is based on the growing popularity of the asset and market sentiment even among mainstream investors. Experts have said that financial markets may even want to replace US dollar reserves with digital dollars and Bitcoin. Some Bitcoin enthusiasts, such as MicroStrategy CEO Michael Saylor, even suggest that investors sell gold and buy Bitcoin instead. He believes that "gold is dead money" and "others will sell their gold." Peter Schiff, an ardent supporter of gold, has always refuted this statement. He believes that Bitcoin is a scam and cannot be considered to replace gold just because Bitcoin appreciates in price. Schiff's criticism of Bitcoin often annoys traders. One trader specifically compared his investment in Bitcoin and gold. He claimed that if he invested $1 in Bitcoin and gold respectively, after 11.4 years, Bitcoin would rise to $66,542,100, while gold would only be $1.63.

Not all indicators suggest that Bitcoin will replace gold in the short term, at least for now. It is undeniable that gold is indeed a good store of value compared to Bitcoin, and this trend will continue.

Although the market value of gold and Bitcoin is likely to be close in the next few years, for now, there may be a short-term correction in the exchange rate of gold to Bitcoin.

Each month's TD Sequential data points to a reversal in gold's trend against Bitcoin. This could be due to a Bitcoin crash, or due to a massive increase in gold relative to cryptocurrencies. However, it is important to note that these signals can be ignored when an asset is trending strongly enough. For example, a TD 13 sell signal from Bitcoin's last major peak barely caused a change in the precious metal's rally. Bitcoin is trending up in the long term, and gold is likely to fall relative to cryptocurrencies in the foreseeable future. The only question we need to be concerned about is whether there will be a short-term reversal.