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Mike McGlone, Bloomberg’s chief commodity strategist, believes that Bitcoin might further decline against gold in the near future.
On Dec. 18, the leading cryptocurrency reached a new record high of 41 ounces against gold.
However, the flagship cryptocurrency ended up losing steam, plunging by more than 20% in less than two months.
McGlone believes that there might be more room for “mean reversion.”
As reported by U.Today, prominent commodity trader Peter Brandt recently opined that the fact that Bitcoin was struggling to outperform gold was “very surprising” considering that Bitcoin made significant strides in terms of institutional adoption last year. Earlier, Brandt predicted that the price of Bitcoin could reach 89 ounces.
Gold has been on a tear this year, hitting new record levels amid geopolitical uncertainty. The yellow metal is now approaching the $3,000 mark for the first time ever.
Meanwhile, Bitcoin has now slumped to a one-week low due to hotter-than-expected US inflation data. The flagship cryptocurrency is currently trading at $95,672, according to CoinGecko data.
The fact that Bitcoin has failed to make any substantial gains against gold was not left unnoticed by Peter Schiff, one of the most vocal crypto naysayers.
“If Bitcoin is the new gold, why has it become less important than gold over the past four years?” Schiff recently asked his social media followers.
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