Bloomberg strategist: Bitcoin is overtaking gold as a store of value

Technical and fundamental indicators suggest bitcoin is gaining the upper hand over gold as a safe haven.

Some indicators suggest bitcoin (BTC) is displacing gold as the main safe haven. That could open the doors to broader mainstream Bitcoin Hero acceptance in terms of digital currency, according to senior strategist at Bloomberg Mike McGlone.

McGlone tweeted on Monday that Bitcoin is starting to get upper hand in the safe haven battle, looking at technical and fundamental indicators. He explained:

„Gold will always have a place in jewellery and coin collections. But most indicators point to Bitcoin replacing the precious metal as a store of value in investors‘ portfolios at an accelerating pace.“

He attached a chart to the tweet showing how much better bitcoin has performed against gold since mid-2020. The overall holdings of gold ETFs have declined in the process. This suggests that Bitcoin is becoming more popular than gold among institutional investors. The chart also shows a sharp decline in Bitcoin’s volatility compared to gold.

McGlone has long argued that Bitcoin would eventually become the preferred safe haven for investors

It continues to evolve into „digital gold“. In early February, the Bloomberg strategist predicted that BTC would quickly rise to US$50,000 as investors sell their gold bullion and invest in the digital asset. The largest cryptocurrency reached US$50,000 less than two weeks later.

In November 2020, McGlone also predicted that Bitcoin could rise to US$170,000 in the next two years and then consolidate, like gold.

So far this year, Bitcoin has had the upper hand in the battle with gold. On Monday, 1 bitcoin was worth 30.3 ounces of gold. That ratio peaked at 32.1 in February, according to MarketWatch data.

The BTC spot rate is currently above US$54,000. Gold, meanwhile, is down 0.9 per cent on the New York Mercantile Exchange’s Comex at US$1,683 per troy ounce.