BTC vs gold in 2024
Wall Street is currently experiencing another regional banking crisis, and many large companies have already announced massive layoffs in 2024. Bloomberg Senior Commodities Strategist Mike McGlone believes that the US may face a recession at the end of the year.
At the same time, he believes that in 2024, Bitcoin will perform less favourably compared to the stock market.
Contrary to widespread market expectations, McGlone believes that forecasts of a possible interest rate cut by the US Federal Reserve, which is usually favourable for risky assets such as cryptocurrencies, may not materialise. As a result, gold may outperform Bitcoin in terms of dynamics over the course of the year.
Bitcoin to replace gold in the US banking crisis ─ Katie Wood
Ark Invest’s Katie Wood believes that Bitcoin will replace gold as a safe asset sooner than expected.
In a recent interview on YouTube, Katie shared her perspective on Bitcoin’s current behaviour, highlighting its role as a risk-reducing asset and a “flight to quality” amidst economic uncertainty.
Wood notes a pattern seen during last year’s regional bank crisis in March, when the price of BTC experienced a 40 percent jump while the KRE index struggled. Drawing parallels to the present, Wood notes that Bitcoin is gaining momentum again, while the regional bank index is showing signs of volatility.
She suggests that the perception that Bitcoin is a “flight to quality” is becoming more and more apparent. On the other hand, global markets such as China are facing severe economic uncertainty, and more and more investors are looking to invest in Bitcoin.
To support his point of view, Wood cites a graph of Bitcoin’s price compared to gold, which shows a steady long-term upward trend. This trend, according to Wood, reflects the ongoing process of Bitcoin’s potential replacement of gold in the investment sphere.