The cryptocurrency sector is still reeling from the massive sell-off started by the crash of crypto trading platform FTX, and the price of its largest asset by market capitalization – Bitcoin (BTC) continues to consolidate.

That said, commodity strategist at Bloomberg Intelligence Mike McGlone has kept his optimistic outlook on Bitcoin and the industry as a whole, suggesting that Bitcoin could outperform gold in the future as its top competitor, as he explained on December 7.

Specifically, McGlone said that:

“The nascent technology/asset is a top contender to outperform the metal in the long term, as we see it, and is backing up into a too-cold price zone.”

He also posted a chart demonstrating “the Bitcoin-to-gold ratio at about the 10x level, which was first reached in 2017,” adding that “in a world rapidly going digital, the benchmark crypto is a top competitor to old-guard gold.”

Volatility is high yet declining

McGlone did acknowledge that, at about 4x the metal, Bitcoin’s 260-day volatility was still relatively high, although much lower than in 2018, when it was at about 10x to that of gold, despite the rising adoption facing a setback with the FTX collapse.

Furthermore, he stressed that “the crypto may be transitioning toward a high-beta version of gold and US Treasury bonds,” as well as concluding that “declining relative Bitcoin risk may only be a matter of time.”

Bitcoin price analysis

Meanwhile, the flagship decentralized finance (DeFi) token is currently changing hands at the price of $16,824.29, recording a very slight daily increase of 0.07% but an equally modest decline of 1.60% across the previous week, adding up to the monthly loss of 14.79%. In the meantime, gold is trading at $1,785.70 per ounce.

Earlier, Finbold reported that the ‘Bitcoin Rainbow’ indicator was consolidating at its lowest point as the maiden asset was aiming to reclaim the $17,000 level, whereas indicators were hinting at a bottom and a possible bull run in the future.

At the same time, Online Blockchain CEO Clem Chambers has warned that it could crash further to $8,000 as the FTX crisis remains unresolved and after Ethereum (ETH) was seen outperforming Bitcoin in the second half of 2022.

 

 

 

 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.