Bloomberg Senior Analyst Weighs In: Gold vs. Bitcoin Amid Potential 2024
#US Recession
Predicting which asset will perform better during a recession is always challenging & depends on various factors & perspectives. In the case of gold & Bitcoin, here's what some experts, including a senior Bloomberg analyst, suggest:
Gold:
1. Bloomberg Analyst Opinion: According to Greg Shearer, executive director of global commodities research at
#JPMorgan Chase & Co., gold is likely to benefit from a potential US recession in 2024. He predicts gold prices to surpass $2,000 by year-end & reach new records in 2024. His reasoning rests on:
- Falling real yields: When the Federal Reserve cuts rates in response to the recession, real yields (yields adjusted for inflation) tend to fall. This makes gold, which doesn't offer fixed income, more attractive compared to interest-bearing assets.
- Safe-haven status: Gold historically serves as a safe haven during economic downturns due to its perceived stability & limited supply. Investors often flock to gold when traditional markets falter, pushing up its price.
Bitcoin:
1. Volatile & Unpredictable: Bitcoin's performance during a recession is more uncertain due to its high volatility & limited track record compared to gold. Its price is influenced by various factors, including:
- Regulatory environment: Increased government scrutiny could dampen confidence & negatively impact Bitcoin.
- Adoption & institutional investment: Broader adoption & increased institutional investment could bolster Bitcoin's value.
- Macroeconomic conditions: The overall economic climate & investor sentiment toward riskier assets play a significant role.
Overall:
Both gold & Bitcoin are considered potential recession hedges, but predicting their performance is challenging. Gold, with its historical safe haven status & anticipated benefits from falling real yields, appears stronger in this regard. In contrast, Bitcoin's susceptibility to rapid price swings & reliance on external factors introduces additional uncertainty.
$BTC #BTC!💰 #BinanceTrends