A number of indicators suggest that Bitcoin (BTC) is pushing aside gold as the premier safe-haven asset. This could set the stage for wider mainstream adoption of the digital currency, according to Mike McGlone, a senior commodity strategist at Bloomberg.
McGlone tweeted Monday that the battle between the safe havens is beginning to favor Bitcoin, based on technical and fundamental indicators. He explained:
“Gold will always have a place in jewelry and coin collections, but most indicators point to an accelerating pace of Bitcoin replacing the metal as a store of value in investor portfolios.”
The chart accompanying the tweet shows Bitcoin’s strong outperformance versus gold since mid-2020, while total known holdings of gold ETFs have declined. In other words, it appears that Bitcoin is gaining traction among institutional investors at the expense of gold. The chart also highlights a sharp decline in Bitcoin’s volatility relative to that of gold.
