Fed Hikes Seen Hastening Bitcoin Convergence With Gold: Chart
Bitcoin’s convergence with gold likely to accelerate with Fed’s help.
(Bloomberg) -- Bitcoin’s soaring premium to gold is being eroded as the digital currency faces regulatory scrutiny and lower demand. The convergence is likely to accelerate with help from the Federal Reserve, according to Mike McGlone, a strategist at Bloomberg Intelligence, who says rate hikes have marked bitcoin tops and gold bottoms. “Getting past imminent Fed tightening, increasing inflation and the weak dollar are all gold-positive, while the opposite, mean reversion, is bound to continue overwhelming bitcoin,” he said, adding that the price of one bitcoin and an ounce of gold were the same only 11 months ago.
--With assistance from Nancy Moran
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