Bitcoin's "Digital Gold" Status at Risk as Gold Gains Traction

Mike McGlone, a senior commodity strategist, has recently shared his insights on the current state of Bitcoin and gold. According to McGlone, Bitcoin is at risk of losing its "digital gold" status as physical gold gains traction. He noted that Bitcoin ETFs have experienced significant outflows over several months, with institutional investors withdrawing funds. In contrast, gold, which has been declining for the past four years, is now seeing a reversal in its fortunes.

McGlone's analysis suggests that this shift might indicate a peak in the crypto frenzy for 2024, marking an enduring risk-asset apex. He shared a chart illustrating Bitcoin's initial surge, driven by what he described as "the biggest money pump in history." However, the current situation appears to be a "hangover" from that surge, with investors now favoring gold over Bitcoin. Despite Bitcoin's recovery from a major fall last week, the trend seems to be favoring gold.

Additionally, McGlone pointed out that while Bitcoin's rise is gradually fading, Chinese government bonds are declining. This shift indicates that investors are opting for traditional safe havens like gold, pulling out of stock indexes and Bitcoin in the process. At the time of reporting, Bitcoin was trading at $85,030, having surged roughly 8% between Friday and Sunday, from $79,040 to $85,430.

Robert Kiyosaki, author of "Rich Dad Poor Dad," disagrees with McGlone's assessment. Kiyosaki stated that his three favorite assets—gold, Bitcoin, and silver—are all on the rise. He reiterated his prediction of a giant market crash, which he had foreseen 20 years ago, and claimed that the corrupt and crooked US dollar is being wiped out. According to Kiyosaki, those saving in stocks, bonds, ETFs, and mutual funds are being wiped out by central banks. He believes the only way out of this situation is to save in Bitcoin, physical gold, and physical silver.