Mike McGlone, Bloomberg Intelligence's chief commodity strategist, recently shared insights on Bitcoin, gold, and their relationship with copper via his X account.
He noted that Bitcoin has been underperforming compared to gold, despite a robust S&P 500.
Gold Outperforming Bitcoin and Elevated Risk Assets – #Bitcoin lagging #gold despite the record-setting S&P 500 may augur headwinds for risk assets. At 24 ounces of the metal equal to the crypto on Oct. 22, the Bitcoin/gold ratio is below a high of 34 in March and a 2021 peak of… pic.twitter.com/oqYxi2yZht
— Mike McGlone (@mikemcglone11) October 23, 2024
In October, often referred to as “Uptober” by crypto enthusiasts, the value of one Bitcoin dropped to 24 ounces of gold as the precious metal reached a four-year high of $2,713.88 per ounce.
This is a significant decline from March, when one Bitcoin was equivalent to 34 ounces of gold, and even lower than the 37 ounces in 2021. McGlone suggested that Bitcoin could encounter challenges ahead, especially given the current strength of the stock market alongside its declining value.
While some, like Bitcoin advisor Max Keiser, remain optimistic about Bitcoin potentially hitting $220,000, McGlone highlighted a concerning correlation between Bitcoin and copper.
Both assets seem to be struggling in the context of a rising stock market, with Bitcoin exhibiting characteristics of a risky stock rather than a safe haven. He emphasized that Bitcoin’s volatility, like copper’s, must increase to support further price growth.
Ethereum (ETH) has just triggered a golden cross against Bitcoin (BTC)—a technical pattern that has historically preceded massive altcoin rallies.
Veteran trader Peter Brandt has reignited discussion around Bitcoin’s long-term parabolic trajectory by sharing an updated version of what he now calls the “Bitcoin Banana.”
Bitcoin is once again mirroring global liquidity trends—and that could have major implications in the days ahead.
The crypto market is showing signs of cautious optimism. While prices remain elevated, sentiment indicators and trading activity suggest investors are stepping back to reassess risks rather than diving in further.