Key Reason Why Bitcoin Nearing $70,000, Per Bloomberg’s Mike McGlone
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Mike McGlone, senior commodity strategist at Bloomberg, published a tweet about Bitcoin nearing the $70,000 level and what may happen to the gold price while it happens.
McGlone has named two main reasons why Bitcoin may soar to $70,000 and the gold price may crash.
What may happen to gold as Bitcoin heads for $70,000: McGlone
Bloomberg’s expert mentioned the recent Bitcoin price surge and that BTC is likely targeting the $70,000 mark now. In the meantime, he stated, gold is considered a BTC rival in the world of physical assets by many parameters, and mainly as a safe haven asset. The current massive inflows into spot Bitcoin ETFs may “leave the metal looking naked in portfolios.”
Despite the fact that China is quickly acquiring gold, McGlone stressed, a tremendous wave of interest is now aimed at Bitcoin-based exchange-traded funds, which were recently approved by the Securities and Exchange Commission after almost a decade of lobbying. Many investors are taking their funds out of gold ETFs and sending them into Bitcoin funds. Besides, the expert mentioned declining gold futures interest.
Yuri MolchanBitcoiner Michael Saylor dismisses gold
As reported by U.Today recently, vocal Bitcoin evangelist and head of MicroStrategy Michael Saylor published a tweet in which he showed that since August 2020, when the business intelligence giant began to regularly stock up on BTC, the flagship cryptocurrency has skyrocketed by 333% - and that was before the current surge to the $64,000 level. Earlier this week, MicroStrategy made another massive Bitcoin purchase, grabbing approximately 3,000 BTC for $155 million.
As for gold, Saylor tweeted that over the past three and a half years, it has declined by 1%. As of Feb. 29, gold traded at $2,048 per ounce.
Earlier this week, Michael Saylor called on the global BTC community, urging them not to sell their Bitcoin as the cryptocurrency soared above $61,000 and then headed on to the $64,000 level.
At the time of this writing, Bitcoin is changing hands at $62,424. With the fourth Bitcoin halvening event less than two months away, many experts from the cryptocurrency space are making bullish predictions. Among them is Adam Back, founder of BlockStream, who expects BTC to hit $100,000 before the halving.
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