Analyzing Bitcoin's Relationship with Gold and S&P 500: Insights from Bloomberg Intelligence Strategist
Analyzing Bitcoin's Relationship with Gold and S&P 500
Mike McGlone, a Bloomberg intelligence strategist, delves into the intricate relationship between Bitcoin, gold, and the S&P 500, shedding light on recent trends and their potential implications for the crypto market.
Bitcoin/Gold Cross and S&P 500
McGlone highlights the declining Bitcoin/gold cross, particularly in relation to the S&P 500, signaling significant implications for risk assets. Despite Bitcoin's rally post-SEC approval of spot Bitcoin ETFs, it has failed to surpass previous highs against gold and the S&P 500 set in 2021.
Impact of U.S. ETF Launches
The launch of Bitcoin ETFs in January led to increased inflows, solidifying Bitcoin's position as a leading indicator. However, with the slowdown in ETF inflows, there are potential repercussions for risk assets, including cryptocurrencies.
Bitcoin Price Action
Following its halving event in late April, Bitcoin experienced a price dip, trading around $57,000, the lowest in two months. This correction, measuring nearly 20% from its mid-March all-time high, marks one of the deepest since November 2022. Despite this, Glassnode suggests the macro uptrend remains resilient, with relatively shallow corrections.
