Bitcoin (BTC) In ‘Autocorrelation Hangover’ Mode: Mike McGlone

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Bitcoin (BTC) In 'Autocorrelation Hangover' Mode: Mike McGlone

Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence suggests that Bitcoin might be experiencing an “autocorrelation hangover.” McGlone’s position is premised on data from the 100-week Moving Average of Gold against Bitcoin shared in a chart by Bloomberg Intelligence.

The Senior Commodity Strategist posits that the relationship between Bitcoin and gold could be indicative of broader market trends.

Gold’s Record-Setting Month

In May, gold achieved another record end to the month, potentially signaling its continued ability to outperform stocks and other assets. This performance could offer insights into market dynamics and asset strength.

The May figures are a significant jump from April when the price of gold witnessed a decline in the weeks leading to the Federal Open Market Committee (FOMC) meeting. At the time, gold crashed to near $2,300 per ounce. Meanwhile, gold’s performance also triggered anxieties on Bitcoin causing a drop in price to $60,000.

Some analysts attribute the gold price rally witnessed in May to the increased adoption of the asset by investors looking to hedge their funds against inflation and other economic factors.

Earlier in the year, Robert Kiyosaki, the renowned author of “Rich Dad Poor Dad” had advised that investing in Bitcoin and gold was a wiser investment choice. The increased adoption in April and May seems to suggest that investors heeded his call.

Bitcoin Performance Since The Great Recession

Emerging from the Great Recession, Bitcoin has been a standout performer and a key market indicator. The digital asset had a fantastic bullish run, even hitting an All-Time-High (ATH) above $73,000 in March of this year.

However, as per McGlone’s analysis, recent developments, including the launch of spot Bitcoin ETF products and a supply cut in the first half of the year through halving have shown a divergent weakness in the Bitcoin/gold cross. He maintains that the poor performance of the digital asset suggests that Bitcoin’s strong performance may be encountering new challenges.

Although McGlone was silent on the challenges responsible for this decline in Bitcoin performance against gold, some have attributed it to the volatility of the cryptocurrency ecosystem. There is, however, an optimism that Bitcoin will witness a bullish trajectory before the year ends.

At the time of writing, BTC price has soared by 1.47% to breach the $70,000 mark.

Read More: Toncoin (TON) Price Soars As Whale Activity Surges Over 200%

The post Bitcoin (BTC) In ‘Autocorrelation Hangover’ Mode: Mike McGlone appeared first on CoinGape.

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