Bitcoin is a "top contender" to outperform gold in the long term, says commodity guru

The cryptocurrency sector is still reeling from a massive selloff from the collapse of crypto trading platform FTX, and the price of its largest asset by market capitalization, Bitcoin (BTC), continues to consolidate. 

 Bloomberg Intelligence commodity strategist  Mike McGlone, however, maintained an optimistic view of Bitcoin and the industry as a whole, suggesting that Bitcoin could surpass its rival gold in the future, as he explained on December 7. 

 More specifically, McGlone said this: 

 "Emerging technology/assets are the best candidate to outperform the metal in the long term as we see it, and retreat into an overcool price zone." 

 He also posted a chart showing "the ratio of Bitcoin to gold at about 10 times the level first reached in 2017," adding that "in a  rapidly digitizing world, the benchmark  is the biggest competitor to the old guard.

Volatility  high but falling 

 McGlone acknowledged that Bitcoin's 260-day volatility was about 
 times that of the metal, though much lower than in 2018, when it was  about 10 times that of gold, despite growing adoption. failure with the collapse of FTX. 
 He further emphasized that "crypto could move to the high beta of gold and US Treasuries" and concluded that "it may only be a matter of time before the relative risk of Bitcoin decreases". 

 Bitcoin Price Analysis 

 The decentralized finance (DeFi) flagship is currently trading at  $16,824.29, registering a very modest daily gain of 0.07%, but an equally modest decline of €1.60 last week, adding  to its monthly losses of 14. 79% Meanwhile, gold is trading at $1,785.70 per ounce.

Earlier, Finbold reported that the "Bitcoin Rainbow" indicator stabilized at low levels, as the main asset tried to reach the $17,000 level, while the indicators hinted at a bottom and a possible bull run ahead. 

 Meanwhile, Online Blockchain CEO Clem Chambers  warned that it could fall further to $8,000 as the FTX crisis remains unresolved and after Ethereum (ETH) surpassed Bitcoin in the second half of 2022. 

 Disclaimer: The content of this this website should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.

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