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Is Gold Still a “Boomer Rock” Next to Bitcoin? Not This Year, Says Bloomberg Analyst

Press Releases Crypto News CryptoPotato Is Gold Still a “Boomer Rock” Next to Bitcoin? Not This Year, Says Bloomberg Analyst

Gold may finally be prepped to break past its $2000/oz resistance and shatter its reputation among crypto bros of being a “Boomer Rock” in 2023, according to macro strategist Mike McGlone of Bloomberg Intelligence.

The analyst believes that as the macroeconomic environment gets worse, investors are once again retreating to gold as a safe haven – alongside US Treasuries and Bitcoin.

Gold’s Return to Form

In a shared excerpt from McGlone’s Bloomberg Terminal report, the analyst claimed that the global banking crisis and the phenomenon of deflating commodities may reinvigorate the upward trajectory gold experienced since 2001.

“Baby boomers have done well in the stock market, but are finding robust alternatives in US Treasuries, gold and, gingerly, in Bitcoin,” he wrote on LinkedIn.

Both gold and Bitcoin surged after the Federal Reserve promised to bail out Silicon Valey Bank (SVB)’s depositors earlier this month. The former bounced from resistance at $2000 on both March 17th and March 24th, a level its consolidated narrowly beneath since 2020.

In that same period, Bitcoin soared from under $4000 in March 2020 to an all-time high of $69,000 in 2021, prompting major investors to deem the latter a superior asset. The two are often compared on their attributes of “sound money” – namely that they are both fixed in supply and can thus theoretically serve as inflation hedges.

Neither technically performed that role, as both assets declined to multiyear lows amid soaring inflation and resign interest rates. However, the banking crisis – which has injected billions of dollars of new liquidity into the economy – may have both finally living up to their name.

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Author: Andrew Throuvalas

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