Bitcoin Loses Ground to Gold This 'Uptober': Mike McGlone

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Chief commodity strategist of Bloomberg Intelligence Mike McGlone has taken to his account on the X platform (widely famous as Twitter in the past) to share with the investment community his take on what is happening to Bitcoin and gold and what similarities BTC has with copper.

Per his tweet, Bitcoin is underperforming gold so far.

Bitcoin surpassed by gold despite strong S&P 500

McGlone published two tweets, talking about Bitcoin and other commodities – gold and copper. Per him, Bitcoin has been lagging behind its physical rival gold even though the stock market currently remains strong. He refers to the S&P 500 index here that represents stocks.

In October, which crypto traders prefer to optimistically call “Uptober”, 1 Bitcoin became valued in 24 ounces of gold as the precious metal soared to an all-time high for the first time in four years: $2,713.88 per ounce. This is ratio is lower than it was in March (34 ounces per 1 BTC) and even lower than in 2021 when 1 Bitcoin could be bought with 37 ounces of gold.

McGlone says that it could mean that Bitcoin may face headwinds in the near future, especially since the stock market remains at a relatively high level, while BTC is falling back.

As reported by U.Today recently, Bitcoin advisor to El Salvador’s president Nayib Bukele Max Keiser stated that he believes the world’s largest crypto is likely to finally reach the $220,000 level soon because gold, which is also a safe haven, has reached the above-mentioned historic peak.

Bitcoin and copper's mutual issue, per McGlone

McGlone also pointed out that Bitcoin may have certain similar issues with copper – they are both seem to be struggling in the currently rising stock market. The correlation between Bitcoin and the S&P 500 has reached a record peak over a 60-day period. This suggests that BTC is currently behaving more like a risky stock but not a unique safe haven.

Mentioning that Bitcoin’s and copper’s Betas need to increase, McGlone hints that Bitcoin’s volatility needs to stage a big increase if BTC wants to carry on growing in price.