Mike McGlone, chief commodity strategist at Bloomberg Intelligence, believes that Bitcoin has yet to prove that it is capable of acting as an independent asset instead of simply being “the last big trade” chased by speculators.
In order to prove that, the cryptocurrency would have to remain above its 2021 high against gold.
The new big trade?
As of now, Bitcoin is valued at approximately 35 ounces of gold. If Bitcoin falls below that level, it will signal more weakness.
In fact, U.S. Treasury bonds (T-bonds) might emerge as the next big trade. He has added that yields in China are now trading toward 1.75%. Hence, T-bonds might be a more attractive option.
As reported by U.Today, McGlone previously predicted that the price of Bitcoin might collapse to $10,000.
McGlone sticks with gold
McGlone has noted that he personally prefers gold over “digital gold” as of now.
On Aug. 14, Bitcoin briefly peaked at 36.9 ounces on Aug. 14 before paring some of its recent gains.
In mid-April, the Bitcoin/XAUT pair collapsed to just 24.7 ounces, which remains the current 2025 low.
Bitcoin is still down 0.41% against gold this year, which might be quite embarrassing for the holders of the leading cryptocurrency, considering that it has a much smaller market cap compared to the holders of the yellow metal.
As reported by U.Today, Fidelity’s Jurrien Timmer previously predicted that Bitcoin might end up outperforming gold in the second half of the year. However, this prediction has not materialized yet as digital gold continues to lag behind its “safe haven” competitor.