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Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, has taken to his account on the X social media platform (formerly known as Twitter) to share with the community an important “early warning” about Bitcoin.
Despite BTC approaching the highest level against one of the biggest stock market indexes, there is something quite negative to be noted and taken into account, the expert believes.
Previously, several times, McGlone stated that he expects the world’s largest cryptocurrency to crash, losing a zero from the recently reached $100,000 price level.
Bitcoin-to-gold ratio breaking down
Mike McGlone revealed that he has spotted an early warning sign for Bitcoin; despite Bitcoin reaching the highest level against the S&P 500, which may indicate a divergence in its performance compared to traditional safe-haven assets like gold, the leading indicator on the chart shared by McGlone – the Bitcoin-to-gold ratio – is crashing.
This means that the world’s leading cryptocurrency is getting cheaper against gold – BTC/XAU. Now, it is taking fewer gold ounces to buy one Bitcoin. This index peaked in 2021, according to McGlone’s chart.
At the moment, Bitcoin is trading at $96,953 per coin after soaring by almost 3% from $94,670 to $97,430. Ahead of the upcoming FOMC meeting, Bitcoin went down 1.08% today. By now, it has recovered 0.6%.
Robert Kiyosaki reveals why he prefers Bitcoin over gold
The renowned investor and author of the “Rich Dad Poor Dad” book, Robert Kiyosaki, tweeted this week that, while he continues to bet on gold, Bitcoin and silver, he actually prefers Bitcoin to the other two assets.
The key reason for such an attitude is the fact that Bitcoin has a hard cap of only 21 million coins, and it cannot be changed. “One reason why I trust Bitcoin is there are only to ever be 21 million,” Kiyosaki tweeted.
The investor revealed that he owns gold and silver miners, as well as oil wells. He explained that should the prices on these assets increase, he will just mine or drill more of them and their supply would expand. But it is impossible with Bitcoin - “I cannot do that with Bitcoin. 21 million is 21 million,” Kiyosaki stressed.
Vladislav Sopov