Bitcoin
Bloomberg Strategist Presents Crypto Warning for Bitcoin/Gold Cross by U.Today
U.Today – Bloomberg intelligence strategist Mike McGlone recently highlighted an intriguing trend that could have significant implications for the crypto market, particularly with regards to the relationship between gold, gold and the S&P 500.
In a recent analysis, McGlone highlighted the decline in the Bitcoin/gold crossover, particularly for the S&P 500 and its broader implications for risk assets. The analysis also reflects on Bitcoin’s recovery following the SEC’s approval of spot Bitcoin ETFs.
According to McGlone, January’s US ETF launches increased flows, strengthening Bitcoin’s status as a leading indicator. It was a near-perfect storm, as Bitcoin reached all-time highs in the first quarter but failed to reach new highs against gold and the S&P 500, failing to surpass the peaks set in 2021.
Given that inflows into Bitcoin ETFs have relatively slowed, the hangover could have implications for risk assets, including cryptocurrencies.
McGlone explained that Bitcoin was rising relative to gold the last time the S&P 500 e-mini future broke above its 50-week moving average in November, but now the Bitcoin/gold cross is falling.
The decline in the Bitcoin/gold crossover, in contrast to the performance of the S&P 500, could indicate a potential reversal in risk assets that could have far-reaching consequences.
Bitcoin Price Action
At the end of April, Bitcoin passed the halving, which has historically been a short-term news selling event. The fourth halving was no exception, with the price of Bitcoin falling shortly after and trading close to $57,000. This is the lowest price in the last two months and the market has been stable since the halving date.
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Measured from the all-time high of $73,000 reached in mid-March, Bitcoin prices are down nearly 20%, which is the deepest closing correction since the FTX lows in November 2021. However, Glassnode deduces that This macro uptrend could be one of the most resilient in history, with comparatively shallow corrections so far.