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Growth for Gold This Year Is Blocked by Bitcoin: Bloomberg's Top Analyst

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Thu, 03/11/2021 - 15:44
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Yuri Molchan
Bloomberg's chief commodity strategist, Mike McGlone, believes that old-guard gold will have a hard time growing this year on charts due to resistance and Bitcoin
Growth for Gold This Year Is Blocked by Bitcoin: Bloomberg's Top Analyst
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Mike McGlone has shared the technical outlook for gold versus Bitcoin, stating that the yellow metal is likely to get "ready for a nap" versus the young asset, Bitcoin.

Bitcoin is an obstacle for gold's increase this year

The chief commodity analyst of Bloomberg has tweeted that, even though gold may recover in March, it is likely to enter an "extended rest period" before long.

The obstacles for gold's growth this year will be "good resistance and relative new-comer Bitcoin."

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Gold has been in decline since the late summer of last year. After reaching an all-time high of $2,049 in August 2020, it has dropped all the way to $1,700 in the meantime.

On March 9, it reached a low of $1,683, as per TradingView.

Bitcoin is outpacing gold as a store of value

As reported by U.Today earlier, McGlone also tweeted that, since 2017, investors have been more attracted to Bitcoin than gold.

Thus, the flagship cryptocurrency has been accelerating in pushing gold aside as a store of value.

Vocal Bitcoin critic and gold lover Peter Schiff, however, believes that investors who are young and inexperienced now will, in the future, prefer goldeven if Bitcoin is still around.

However, Peter Schiff's son, Spencer, has made Bitcoin the only asset in his portfolio and even sold silver shares to obtain more BTC.

Related
Bitcoin Is Accelerating in Replacing Gold as Store of Value: Bloomberg's Mike McGlone

More companies are putting Bitcoin on their balance sheets

Recently, following the example of Square and MicroStrategy, more institutional investors have been buying Bitcoin as a store of value.

Among them is Seetee investment company set up by Norwegian oil magnate Kjell Inge Rokke, which has acquired $58 million worth of Bitcoin, and the biggest investment company in Israel, Altshuler Shaham, which bought $100 million worth of GBTC shares).

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.